A working group has been appointed to begin the review of the Holidays Act 2003, after it was criticised for its complexity and compliance costs.

The Act was passed to promote balance between work and other aspects of employees' lives six years ago.

Dunedin National MP Michael Woodhouse welcomes the review, and believes that trading leave for cash must be
initiated by the employee, not the employer.

However, Labour's Dunedin South MP, Clare Curran, says workers should fear the review and that it will include cutting an extra week's holiday for employees.