Your New Zealand employer can decline your annual leave request — but only on reasonable grounds. Under the Holidays Act 2003, an employer and employee must agree on when annual leave is taken. If you request leave and your employer refuses, they must have a genuine business reason, and they must offer you alternative dates.
Key Takeaways
- Under the Holidays Act 2003, both parties must agree on the timing of annual leave — your employer does not have to accept every request.
- Your employer can decline leave if they have reasonable business grounds — such as seasonal peaks, staffing shortages, or operational requirements.
- The employer must not unreasonably withhold consent — blanket refusals or persistent denials may breach the Act.
- They must offer alternative dates if they decline your request.
- If the employer cannot agree on a date within 12 months of the leave entitlement arising, they must give you at least 14 days’ notice of when the leave must be taken.
What Are Reasonable Grounds for Declining Leave?
The Employment Relations Authority has recognised several scenarios where declining leave is reasonable:
- Seasonal peaks — e.g., retail during Christmas, hospitality during summer, farming during harvest
- Staffing shortages — if too many employees have already booked leave for the same period
- Project deadlines — if your absence would prevent meeting a critical deadline
- Training requirements — if you are required to complete mandatory training during the requested period
- Industry-specific busy periods — e.g., accounting during end-of-financial-year, tourism during school holidays
The key test is whether the refusal is reasonable given the particular circumstances. An employer cannot simply say “no” without a justification.
What About School Holidays?
A common area of tension is school holiday leave. Many parents want leave during school holidays, but these are also peak periods for many businesses. The law does not give parents priority for school holiday leave — it balances the needs of the business against the employee’s preferences.
However, the Holidays Act does require employers to consider an employee’s personal circumstances. For parents, this means the employer should:
- Consider whether alternatives are available
- Explore whether a split of leave across the school holidays works
- Offer the next best available dates
If your employer consistently rejects all school holiday requests without offering alternatives, this may amount to unreasonably withholding consent.
Can You Be Directed to Take Leave?
Yes. Under the Holidays Act, if you and your employer cannot agree on when to take your annual leave, your employer can direct you to take it — provided they give at least 14 days’ notice. The direction must be in writing and specify the dates.
This usually happens when:
- You have not taken leave for an extended period (e.g., more than 12 months)
- The employer wants you to take leave during a shutdown period (e.g., Christmas close-down)
- You have a high leave balance and the employer needs to manage it
Even when directing you to take leave, the employer must ensure the direction is reasonable.
FAQ
Can my employer refuse my leave because no one else can cover?
Yes — this is a classic example of reasonable grounds. If your role requires coverage and no one is available to cover, the employer can decline the request. However, they must also consider whether alternative arrangements could be made.
What if my employer says no to every leave request?
Repeated, unexplained refusals may breach the duty of good faith and the requirement not to unreasonably withhold consent. You can raise a personal grievance if you believe your employer is unreasonably preventing you from taking leave.
How much notice do I need to give for annual leave?
There is no statutory notice period in the Holidays Act — but your employment agreement will likely specify one, typically 2 to 4 weeks. Giving more notice makes it harder for your employer to claim reasonable grounds for refusal.
Can my employer cancel approved leave?
An employer can cancel approved leave, but only in exceptional circumstances. The Employment Relations Authority has held that cancellation is only justified for genuine operational emergencies. The employer should also reimburse any costs you incur as a result.
Can my employer force me to take leave during a shutdown?
Yes — many businesses close between Christmas and New Year. Your employer can require you to take annual leave during this period, provided they give at least 14 days’ written notice. This is standard practice in New Zealand.