Business New Zealand says the Government's making workers leave simpler and more cost-effective

It's announced a new hours-based annual and sick leave accrual system including flexibility of being able to take only the hours needed off work. rather than a full day.

It'll also mean part-time workers will no longer have a minimum sick leave entitlement.

Manager of Employment Relations Paul Mackay says leave's always been accrued, but there were other rules attached.

He says the Government's simplifying it meaning you accrue leave as you go, which is effectively money in your bank that you can withdraw when wanted.