01/09/2026
The Holidays Act 2003 is being replaced. Under the new Employment Leave Act 2026 you will need to determine STANDARD HOURS for your employees.
This impacts how your employees receive Annual Leave under the new rules.
In plain language, "additional hours" means hours worked beyond an employee's agreed standard hours.
When hours count as additional hours - they are additional hours if:
the employer is not required to offer those hours, and
the employee has the right to refuse them, and
the employee actually works them, and
the employer must pay something for those hours,
or the hours are worked under an availability provision (an arrangement where the employee must be available to work when requested). ** Exception for salaried employees
Hours worked beyond standard hours are not treated as additional hours if:
The employee is paid a salary, and the employment agreement says that no extra payment is due for those extra hours because compensation for them is already included in the salary.
What is an “additional payment”?
An additional payment is simply the payment for those extra hours. It can be:
At the same hourly rate as normal hours, or
At a different rate (for example, overtime rates).
Example
Standard hours: 40 hours per week.
Employer offers an extra 5-hour shift.
Employee can choose whether to accept it.
Employee works it and is paid for it.
Those 5 hours are additional hours.
However, if the employee is on a salary and their employment agreement says the salary already covers extra hours, those extra 5 hours may not be treated as additional hours under subsection (2).
