Holidays (Full Recognition of Waitangi Day

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1 Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Bill 1

2 Contents Existing provisions The interface with other legislation Past considerations Who will be affected Benefits and Costs International comparisons 2

3 The Holidays Act 2003 Provides for 11 public holidays per year Most public holidays fall on a Monday (Good Friday falls on a Friday) Provincial Anniversary Days (generally), Christmas Day, Boxing Day, New Year s Day and 2 January are Mondayised transferred to the Monday or Tuesday if they fall on the weekend and the employee does not work on the weekend Waitangi Day and ANZAC Day are not similarly protected and are observed on the day that they fall 3

4 Entitlements to Public Holidays The Holidays Act 2003 All employees that work on a public holiday must receive at least time and a half of their regular pay for the time worked Employees that would normally work on the day the public holiday falls, additionally receive an alternative holiday for working on a public holiday Employees that do not work on the public holiday, but would normally work on the day the public holiday falls, receive a paid day off 4

5 Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Bill The proposed new section 44B will allow for the transfer of the public holidays for Waitangi Day and ANZAC Day if they fall on the weekend If Waitangi Day or ANZAC Day fall on a Saturday or Sunday, which is not a working day for most employees, then the public holiday will be treated as falling on the Monday To avoid confusion proposed new section 44B(2) specifically states it does not entitle an employee to more than 2 public holidays for the days listed in section 44(1)(e) or (h) 5

6 Interface with other Legislation Waitangi Day Act 1976, section 4 Contains direction for when Waitangi day is to be observed: In commemoration of the signing on 6 February 1840, at Waitangi of the treaty known as the Treaty of Waitangi, 6 February in each year shall be known as Waitangi Day ANZAC Day Act 1966, section 2(1) Contains direction for when ANZAC day is to be observed: 25 April in each year (being the anniversary of the first landing of troops from the United Kingdom, Australia, and New Zealand on Gallipoli) shall be known as Anzac Day, and shall be a day of commemoration Shop Trading Hours Act Repeal Act 1990 Restricted trading hours on ANZAC Day until 1pm 6

7 Past Consideration on Public Holidays Ministerial Advisory Group Review of Holidays Act public submissions received 14 recommended Mondayising Waitangi Day and/or ANZAC Day No change was recommended due to insufficient public appetite for any change Petition 2008/69 of Laura McCarthy to the Transport and Industrial Relations Committee Laura McCarthy and 66 others to review the Holidays Act 2003 in order to allow for public holidays that fall on a weekend to be observed on the following Monday The Department of Labour considers that it is unnecessary for the House of Representatives to conduct a review of the Holidays Act A Ministerial Advisory Group reviewed the Act last year and concluded that no change was needed to the current treatment of Public Holidays. 7

8 Numbers of employees potentially affected Statistics NZ Survey of Working Life (2008) 62.7 percent of employed people said they usually work all of their hours between 7am and 7pm, Monday to Friday (standard working times), and 35.3 percent said they did not. 8

9 Benefits Increased opportunity for rest and family / community activities for employees who work Mondays Align the treatment of Waitangi Day and ANZAC Day with the Christmas holidays Align the treatment of ANZAC Day with Australia 9

10 Costs The special significance of 6 February and 25 April may be perceived to be lost Will increase costs to some businesses that operate on the Mondayised public holiday May create confusion as some people already find Mondayisation confusing Result in a perception that public holidays are biased towards Monday to Friday workers 10

11 Cost of Mondayisation Modelling approach Organisation Estimated impact Per Mondayised Public Holiday Cost to the employer The Ministry $220 $280 million Cost to the whole economy (output) NZIER $134 $186 million GDP lost by a long weekend NZIER $134 million 11

12 Additional Information 12

13 Upcoming Calendar Year Waitangi Day ANZAC Day Day that would be Mondayised 2015 Friday Saturday ANZAC Day 2016 Saturday Monday Waitangi Day 2020 Thursday Saturday ANZAC Day 2021 Saturday Sunday Waitangi Day and ANZAC Day 2022 Sunday Monday Waitangi Day 2026 Friday Saturday ANZAC Day 2027 Saturday Sunday Waitangi Day and ANZAC Day 2028 Sunday Tuesday Waitangi Day 13

14 Comparison of public holiday and annual holiday entitlements in 28 OECD countries Country Number of public holidays (days)* Minimum paid annual leave** Country Number of public holidays (days)* Minimum paid annual leave** Japan Poland Slovakia Norway South Korea Luxembourg Spain Hungary Austria Belgium Portugal Germany Slovenia United States Greece Denmark Czech Republic Ireland Sweden Switzerland Italy Canada New Zealand United Kingdom Finland Australia France Netherlands * Figures are based on statutory entitlements for an employee working five days a week with ten years' service. Source: Mercer Global s 2009 Worldwide Benefit and Employment Guidelines. ** The figures in the table relate to the minimum annual holiday entitlements provided for in national legislation. Many employers in the countries offer more paid holidays than the legal minimums described, on the basis of collective and/or individual agreements. This factor is especially important in the United States given that the law does not establish a legal minimum. Source: World Bank s Doing Business 2012 report. 14

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