Proposed Leave Bill Will Make Workers' Lives 'Materially Worse,' Select Committee Hears

Workplace Relations Minister Brooke van Velden admits some workers will be worse off under the new Employment Leave Bill as shift allowances are excluded from leave pay.

By: AXL Media

Published: Apr 29, 2026, 6:42 AM EDT

Source: RNZ Pacific

Shift and Essential Workers Face Significant Pay Cuts

The core of the controversy lies in the transition to an accrual system based strictly on hours worked, rather than the current week-based entitlement.

Financial Impact: Mary Becker, a charge nurse in a youth inpatient facility, testified that she faces a $2,700 annual pay cut. This is because the bill excludes shift and overtime allowances from leave payments, effectively penalizing those in high-burnout fields like healthcare.

Public Holiday Premium: Senior employment lawyer Gerard Elwell warned that the bill removes a "substantial amount" of the premium for working public holidays. By scrapping days off in lieu for certain workers, the bill may encourage employers to staff public holidays for short, irregular shifts without the current financial disincentives.

PSA Challenges "Bizarre" Defense of the Bill

The Public Service Association (PSA) has vowed to fight the legislation, with National Secretary Fleur Fitzsimons stating the bill would make lives "materially worse." * Heated Exchange: The committee meeting turned tense when National MP Carl Bates suggested that government tax cuts would offset these losses. Fitzsimons labeled this comparison "bizarre" and "sad," arguing that tax relief should not be used as a justification for stripping away fundamental employment entitlements.