Can holiday and leave entitlements be “traded-off” against one another?
No.
Section 6 of the Holidays Act 2003 outlines that the legislation is a minimum for all holiday and leave entitlements for all employees regardless of whether they are part time, full time or casual. Each entitlement stands alone and cannot be ‘traded off’ against each other on a package basis. For example, an employer cannot agree with their employee for the employee to forgo their right to time and a half for work done on a public holiday for an extra week of annual holidays. However, employees and employers can agree to trade off any extra entitlement above the minimum.
Labour Inspectors are able to enforce the minimum provisions in the Holidays Act. Additional entitlements, however, (such as an extra week of annual holidays) can be enforced only by the employee or their authorised representative as they are part of the employee’s employment agreement. Contractual entitlements would be enforced through the Employment Relations Authority.
Click here for information on Labour Inspectors
Click here for information on an employee’s minimum holiday and leave entitlements
Use our Holidays and Leave Tool to work out entitlements for public holidays, and sickness and bereavement leave.
Date Modified: Thursday, March 31, 2011
Disclaimer: The content on this website covers common problems. It will not answer every question
and should not be used as a substitute for legislation or legal advice. State sector employers
and employees may be affected by some differences in the laws that apply to them (e.g. State
Sector Act 1988). The Department of Labour takes no responsibility for the results of any actions taken
on the basis of information on this website, nor for any errors or omissions.
