31/07/2026
📢 Employment Leave Act 2026 — what it means for licensed premises
Parliament has repealed the Holidays Act 2003, replacing it with the Employment Leave Act 2026. For hospitality venues and alcohol retailers — where casual and part-time staff carry much of the trading load, especially over public holidays — this is a significant shift.
Why it matters for hospitality & alcohol retail industry:
🍺 Casual bar/floor staff — under the new "additional and casual hours" category, these staff won't accrue annual or sick leave in the usual way. Instead, you'll pay a 12.5% leave compensation payment on top of wages. Time to review casual staffing costs.
🍺 Public holiday trading — a new "otherwise working day" (OWD) test replaces the old, often-disputed method for working out holiday pay and entitlements. Relevant for premises regularly trading on Christmas Day, New Year's, Easter, and other high-volume holiday periods.
🍺 Hours-based accrual — leave will accrue in hours rather than weeks/days, which should better reflect the variable rosters common in hospitality.
🍺 Duty managers & standard-hours staff — most will simply see entitlements converted from days to hours under their existing contracts.
🍺 Past underpayments — a formal remediation process is being introduced for historic Holidays Act liabilities, relevant if you've had payroll or roster complexity in the past.
⏳ Transition: most employers get a 2-year window to update payroll systems before the new Act takes effect — but now is the time to start reviewing rosters, casual staffing arrangements, and public holiday pay practices.
If you hold an alcohol licence and want to understand how this affects your business and compliance, get in touch — happy to walk through it.