There's hopes the holiday law changes will benefit Kiwi businesses. 

The Government's drafting legislation and will put it out for consultation in September. 

It includes proposing moving annual leave from an entitlement system to an accrual system and linking sick leave to hours worked. 

Business Canterbury CEO Leeann Watson told Mike Hosking that the system hasn't kept up with modern day work practices. 

She says it's not fit for purpose and changes are needed, so this is a step in the right direction. 

LISTEN ABOVE 

• Changes to the Holidays Act: Govt wants feedback
• Minister Brooke van Velden promises to 'simplify' Holidays Act amid proposed shake-up