The Employment Leave Bill has reached another important milestone, with the Select Committee reporting back on its recommendations.
While the overall structure of the proposed leave system remains largely unchanged, the Committee has suggested several practical improvements that should make the new framework easier for employers to apply in real workplaces. Encouragingly, a number of these recommendations reflect concerns Grow HR raised directly in our submission to the Select Committee.
Practical changes that will help Employers
Some of the most useful changes include more flexibility around notional rosters, so employers and employees can agree on a methodology rather than being locked into a fixed roster that does not reflect how someone actually works.
Other improvements include a proposed 'otherwise working day' test for public holidays, clearer wording confirming annual leave is intended to support rest and recreation, stronger protections around leave during closedowns, and refinements to some payment and record-keeping provisions employers had found difficult to administer.
What do you need to do now?
The short answer is: not much.
For now, your focus should be on continuing to ensure your current leave practices and payroll calculations are compliant with existing legislation. Addressing any issues now will help minimise the risk of remediation liabilities and make any future transition to the new framework much smoother. There is no need for you to make immediate changes to payroll systems, employment agreements or leave processes for any other reason.
The Bill is expected to move through the remaining Parliamentary stages quickly, but most of the new framework will not come into force until two years after Royal Assent. Based on current timelines, implementation is likely to occur sometime in mid to late 2028. That should give payroll providers, software developers and employers plenty of time to prepare for one of the most significant changes to employment leave legislation in decades.
A watchpoint: Politics still matters
While the Bill continues to move forward, there is still some political uncertainty. Both Labour and the Green Party are opposing the Bill in its current form. The 2026 election could still influence whether it proceeds unchanged, is amended further or becomes subject to future reform.
Our advice remains simple: stay informed, but do not panic.
There is plenty of time before any changes will be required. We expect a good deal of guidance and payroll development work to happen before the new system takes effect. Grow HR will keep monitoring developments closely and will bring you practical guidance, training and implementation support as the Bill progresses.
As always, if you have questions about what these changes could mean for your workplace, or you're unsure whether your current leave practices and payroll calculations are fully compliant, get in touch. We're always happy to help.