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Leave Entitlement Breaches

What It Is

A leave entitlement breach occurs when an employer denies, miscalculates, or mishandles an employee’s statutory leave rights. Every employee in New Zealand has minimum entitlements to annual leave, public holidays, sick leave, bereavement leave, and parental leave under the Holidays Act 2003 and Parental Leave and Employment Protection Act 1987.

Breaches may include:

  • Failing to pay the correct amount for annual or public-holiday leave.
  • Denying leave accruals or “resetting” balances illegally.
  • Misclassifying employees as “casual” to avoid leave obligations.
  • Requiring employees to work on public holidays without proper compensation.
  • Refusing sick or bereavement leave contrary to statutory rights.

These errors can occur through payroll mistakes, deliberate avoidance, or misinterpretation of complex leave calculations.

Your Rights and the Law

  • Holidays Act 2003 s 16 – Minimum of four weeks’ paid annual leave after 12 months of continuous employment.
  • Holidays Act 2003 ss 44–48 – Entitlement to paid public holidays and additional pay if required to work.
  • Holidays Act 2003 s 63 – Minimum of 10 days’ paid sick leave per year after 6 months’ continuous employment.
  • Parental Leave and Employment Protection Act 1987 ss 6–12 – Governs maternity, partner, and extended leave entitlements.
  • ERA 2000 s 65(1) – Every employee must receive a written employment agreement specifying leave provisions.
  • ERA 2000 s 4 – Good-faith duty requiring open and honest communication about entitlements.

Process (How a Case Proceeds)

  1. Identify the Breach – Review payslips, leave records, and employment agreements.
  2. Request Clarification – Ask the employer to provide calculations for leave and holiday pay.
  3. Raise a Personal Grievance – If mismanagement causes disadvantage or loss (ERA s 103(1)(b)), raise within 90 days.
  4. Parallel contact MBIE or Labour Inspector – Inspectors can audit payrolls and enforce compliance.
  5. Mediation – The Ministry of Business, Innovation & Employment (MBIE) provides free mediation to seek early resolution. The process is voluntary and both parties must agree to attend. Most cases reach resolution at Mediation.
  6. Employment Relations Authority Investigation – If unresolved, a Statement of Problem is filed; the Authority investigates and issues a written determination.
  7. Employment Court Appeal – Possible for errors of law or procedure.

Potential Outcomes / Remedies

  • Repayment of underpaid leave and public-holiday entitlements.
  • Compensation for humiliation or disadvantage under ERA s 123(1)(c).
  • Penalties against employers for serious or intentional breaches.
  • Orders for accurate record-keeping and compliant payroll systems.
  • Declarations of systemic breach and mandatory back-pay projects.

Take Action Today

If your employer has denied or underpaid your holiday, sick, or public-holiday entitlements, you may be owed significant back-pay. Get in touch with us to arrange a no-obligation consultation about your situation. We’ll assess your case, explain your options, help gather evidence, request your employment file, and help you pursue the justice and compensation you deserve.