New Zealand education operates on a four-term school calendar, and the Holidays Act 2003 governs leave for all education employees. Unlike Australia, New Zealand does not have industry-specific education awards — the Act and collective employment agreements set the framework. School holidays, teacher leave, and term-time management all interact with the Holidays Act in ways that create specific compliance obligations for schools and education providers.
This guide covers leave management for New Zealand education employers: entitlements under the Holidays Act, how to manage leave during term time and school holidays, and the compliance mistakes most common in the sector.
Key takeaways
- All New Zealand education employees accrue 4 weeks annual leave after 12 months of continuous employment, accruing progressively from day one.
- Annual leave must be paid at the greater of Ordinary Weekly Pay (OWP) or Average Weekly Earnings (AWE).
- School holidays are not automatically treated as annual leave unless the employee’s employment agreement specifically provides for this.
- Many education employees are covered by collective agreements that provide entitlements above the Holidays Act minimum.
- Part-time and casual education staff accrue leave pro-rata based on ordinary hours — and casual employees receive 8% holiday pay (or the new 12.5% LCP under the proposed Bill).
The Holidays Act framework for education
New Zealand education employees are covered by the Holidays Act 2003 and their individual or collective employment agreement. Most teachers in state and state-integrated schools are covered by collective agreements negotiated through the Education Service Negotiations Office.
Statutory leave entitlements
| Leave type | Entitlement | Qualifying period | Payment |
|---|---|---|---|
| Annual holidays | 4 weeks per year | 12 months (accrues from day one) | Greater of OWP or AWE |
| Sick leave | 10 days per year | 6 months continuous employment | Daily pay or average daily pay |
| Bereavement leave | 3 days (immediate family) or 1 day (others) | 6 months continuous employment | Daily pay or average daily pay |
| Family violence leave | 10 days per year | 6 months continuous employment | Daily pay or average daily pay |
| Public holidays | 11 national + regional anniversary | From day one | Time-and-a-half + alternative holiday if working |
Collective agreement provisions
Most teachers and school staff in New Zealand are covered by collective agreements that provide:
- Additional personal leave above the 10-day statutory minimum
- Specific provisions for school holiday periods
- Enhanced bereavement leave provisions
- Professional development leave
- Specific leave loading or payment provisions
Key point: Always check the applicable collective agreement. Applying only the Holidays Act minimum — without considering the collective agreement — may be a breach.
School holidays and leave
The four-term school calendar creates a unique leave management dynamic. School holidays are not automatically treated as annual leave under the Holidays Act.
When school holidays count as leave
The general rule is:
- If the employee is required to work during school holidays (for example, for planning, maintenance, or student supervision), the school holidays are ordinary working days — and annual leave is not deducted
- If the employee is not required to work during school holidays, the holidays are a period when the employee is not performing ordinary duties — but this is not the same as taking annual leave
The critical question: Does the employee’s employment agreement treat school holidays as leave? If the agreement provides that school holidays are deducted from annual leave, this must be applied consistently. If the agreement is silent, school holidays are generally not treated as annual leave.
Worked example: school holiday leave
A teacher works 30 hours per week during the four school terms (approximately 40 weeks per year). The teacher is not required to work during school holidays (approximately 12 weeks per year).
| Metric | Calculation |
|---|---|
| Ordinary hours per year | 30 × 40 = 1,200 hours |
| Annual leave accrual | 4 weeks = 120 hours |
| Leave as proportion of year | 120 / 1,200 = 10% |
The teacher accrues 4 weeks of annual leave per year based on their term-time ordinary hours.
Annual leave and the “greater of” rule
New Zealand’s annual leave payment rule affects education employees with variable earnings — particularly those who work extra hours during term time or receive additional payments for coaching, mentoring, or extracurricular activities.
Worked example: education leave pay
A teacher earns $1,000/week in ordinary hours but regularly receives additional payments for coaching and extracurricular supervision, averaging $1,150/week over the past 12 months.
| Calculation | Amount |
|---|---|
| OWP | $1,000/week |
| AWE ($1,150 × 52 / 52) | $1,150/week |
| Employee receives | $1,150/week (the greater amount) |
This means the teacher is paid 15% more during annual leave than their normal weekly pay.
Managing annual leave during term time
Education employers face a different challenge to other industries — instead of pressure during peaks, the challenge is coordinating leave during term time when teaching and student support are critical.
Best practice for term-time leave management:
- Set a leave policy that specifies when annual leave can and cannot be taken during term time — for example, no annual leave during the first and last week of a term
- Coordinate leave across departments to ensure adequate staffing for student supervision
- Use relieving teachers to cover approved leave — many schools have arrangements with local teacher registries
- Apply objective criteria for leave approval — first-in, first-served, minimum staffing requirements, or rotation
- Do not refuse leave unreasonably — the Holidays Act requires employers to not unreasonably refuse annual leave requests
Casual and part-time education staff
Education employers rely heavily on casual and part-time staff — particularly for relieving teaching, teacher aides, and administrative support. Their leave entitlements are governed by the Holidays Act.
Casual education employees
Under current law, casual employees who work irregular or intermittent hours receive an 8% holiday pay payment. Under the proposed Employment Leave Bill 2026, this changes to:
- Annual leave accrues from day one at 0.0769 hours per contracted hour worked
- Sick leave accrues from day one at 0.0385 hours per standard hour worked
- A 12.5% Leave Compensation Payment replaces the 8% holiday pay
Part-time education employees
Part-time employees accrue all leave entitlements pro-rata based on their ordinary hours. An employee working 20 hours per week accrues annual leave and sick leave at the same rate per ordinary hour as a full-time employee — they simply accrue fewer total hours.
Common mistake: Failing to accrue leave for part-time teacher aides or administrative staff who work set hours each week. These employees are entitled to pro-rata leave from day one (for annual leave) and after 6 months (for sick leave).
Public holidays in education
New Zealand’s 11 national public holidays plus regional anniversary days interact with the school calendar in specific ways:
- Public holidays that fall during school term are non-working days for teachers unless the school is open
- Public holidays that fall during school holidays are not relevant unless the employee is required to work
- If a public holiday falls on a day the employee would normally work, and the employee does not work, they receive their normal pay
- If the employee works on a public holiday, they receive time-and-a-half plus an alternative holiday
Key tracking point: Alternative holidays carry forward indefinitely. An employee who works on public holidays during school terms earns alternative holidays that must be provided on request.
Common compliance mistakes in NZ education
1. Treating school holidays as automatic annual leave
School holidays are not automatically deducted from annual leave unless the employment agreement specifically provides for this. Applying a blanket “school holidays = annual leave” policy is incorrect.
2. Not accruing leave for part-time staff
Part-time teacher aides, administrative staff, and relieving teachers accrue leave pro-rata. Failing to accrue leave for these employees is a systemic underpayment.
3. Ignoring collective agreement provisions
Many education employees are covered by collective agreements that exceed the Holidays Act minimum. Applying only the statutory minimum is a breach.
4. Incorrect OWP/AWE calculations
Failing to apply the “greater of” rule systematically — particularly for teachers with variable additional payments — creates underpayment.
5. Not providing alternative holidays
When employees work on public holidays, they are entitled to alternative holidays. Failing to track and provide them creates a personal grievance risk.
Practical steps for NZ education employers
- Check the applicable collective agreement — it may provide more generous entitlements than the Holidays Act.
- Determine whether school holidays count as ordinary hours for each employee’s classification.
- Calculate OWP and AWE per employee for each leave period — use the greater of the two.
- Track alternative holidays as they accrue — they do not expire.
- Accrue leave for part-time employees based on their documented ordinary hours.
- Monitor the Employment Leave Bill 2026 — its passage will significantly change accrual and payment rules.
- Keep records for 6 years — the Holidays Act requires employers to maintain accurate leave records.
For more on NZ leave law, see our guide to the Holidays Act in New Zealand, calculating leave pay (OWP vs AWE), and public holidays in NZ.
Frequently asked questions
How much annual leave do teachers get in NZ?
Under the Holidays Act, all employees accrue 4 weeks of annual leave after 12 months of continuous employment. Some collective agreements provide additional leave — check the applicable agreement.
Do school holidays count as annual leave?
Not automatically. School holidays are only treated as annual leave if the employee’s employment agreement specifically provides for this. If the agreement is silent, school holidays are generally not deducted from annual leave balances.
Do casual teachers get annual leave?
Under current law, casual employees receive 8% holiday pay instead of accruing annual leave. Under the proposed Employment Leave Bill 2026, casual employees will begin accruing leave from day one with a 12.5% Leave Compensation Payment.
What collective agreement provisions apply to teachers?
Most teachers in state and state-integrated schools are covered by collective agreements negotiated through the Education Service Negotiations Office. These agreements typically provide additional personal leave, enhanced bereavement leave, and specific provisions for school holiday periods.
How does the “greater of” rule affect teacher leave pay?
Teachers with variable additional payments (coaching, extracurricular supervision) may receive more during annual leave than their normal weekly pay. The “greater of” rule requires payment at the higher of Ordinary Weekly Pay or Average Weekly Earnings.
Sources
- Holidays Act 2003 — NZ Legislation
- Employment Leave Bill 2026 — NZ Legislation
- Annual holidays — Employment New Zealand
- Public holidays — Employment New Zealand
- Sick leave — Employment New Zealand
This article is general information, not legal advice. Confirm entitlements with Employment New Zealand, the applicable collective agreement, and the Holidays Act provisions.