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flag New Zealand replaces fixed sick leave with hours-based rules for part-timers, keeps full-time sick leave, boosts casual pay, and simplifies leave cashouts.

flag New Zealand is overhauling its Holidays Act, replacing fixed sick leave with an hours-based system for part-time workers, eliminating minimum entitlements while aiming to simplify compliance and reduce costs for businesses. flag Full-time workers retain up to 10 days of sick leave, and new parents will keep earning annual leave during parental leave. flag Casual workers get a 12.5% pay increase, and leave can now be cashed up to 25% annually with employer approval. flag Clearer pay statements and notional rosters will improve transparency, with gradual rollout over 24 months, including a 5–10 year transition for schools. flag The reforms, part of a broader modernization effort, seek to balance fairness, simplicity, and economic growth.

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