Beaumont Carol: Holidays Amendment Bill — Second Reading In Committee Speaker Recalled In Committee 
Beaumont Carol: Holidays Amendment Bill — Second Reading In Committee Speaker Recalled In Committee 
[Volume:668;Page:15505] 
CAROL BEAUMONT (Labour) 
: 
 I will also talk about clause 19 “Transitional provision” in Part 2. It contains the phrase “section 28A of the principal Act (as inserted by section 10 of this Act)” which relates to the question of when people will be able to cash up 1 week of their annual leave as my colleague Darien Fenton has said. New section 28A(5) defines the term “entitlement year”. It is “a period of 12 months continuous employment beginning on the anniversary of the employee’s employment; and (b) includes a period of 12 months continuous employment described in section 16(2).” of the Holidays Act. 
When we look at the provisions in new section 28A “Employee may request portion of annual holidays be paid out” we see that they go through the process as to how that will happen. Originally that process was to be informed and voluntary. It will no longer be informed and voluntary. The suggestion that was made to people that the process would happen only when employees wanted it to happen and that everyone would understand the full implications and be very very clear that it was voluntary is no longer there but there are some other provisions on how employees will request that a portion of their annual holidays are paid out. The request must be made in writing and it may be made on one occasion or on more than one separate occasion for example. Employers must consider the request and advise employees in writing as to whether they agree. Employers can decline the request. 
We heard a lot of rhetoric about this matter. We heard that Labour is not supporting workers’ choice and we have had all the high dudgeon about property rights and about whose holidays they are. They are employees’ holidays and apparently we are trying to stop employees using their property their holidays. Well actually if people were honest—and members opposite did not mention this bit—the absolute right is with the employer. We have heard all the great rhetoric on this matter tonight from ACT and National but the property right in relation to buying out holidays effectively sits with employers because they can deny the request. But more than that employers can have an absolutely blanket policy that workers in their workplace will not be able to buy their fourth week’s annual leave. That will be the policy of those employers—full stop tough luck. I would quite like to see whether Ms Roy will get up and explain that situation with regard to the property right and choice. Given that the Opposition got such a bollocking from her about that perhaps she can explain why it is OK for employers to do that. 
After section 28A there is a whole range of requirements in clause 10 regarding how this provision will work. New section 28B “Payment for annual holidays paid out” sets out how the payment will be made and what will happen if it is incorrectly paid out. New section 28D “Requirement to make payout prohibited” provides that an employee’s request under section 28A for a portion to be paid out must not be a term or condition of that employee’s employment. We agree with that—we certainly agree with that. 
In new section 28E as I said employers may have a policy preventing paying out a portion of annual holidays. New section 28F “Labour inspector may determine payout” states: “(1) This section applies if an employer has agreed to an employee’s request to pay out a portion of the employee’s annual holidays under section 28A”—which is the bit that the transitional provision in the bill applies to—“but the employer and employee cannot agree on—(a) the portion of annual holidays that are to be or have been paid out; or (b) the amount that the employer is required to pay the employee for the annual holidays that are to be or have been paid out.” 
These provisions are quite a lengthy bit in the bill. My point in relation to the transitional provision and section 28A is that before employees may be able to access this provision depending on whether their employer has a policy that they can access the right to cash up their holidays a year might be necessary to deal with all the arrangements.