In a move that could have a major impact on the take-home pay of all Kiwi workers, the Government has appointed a group to begin a review of the Holidays Act 2003.

The Government's review comes after years of complaints from employers who claim the Holidays Act is too "complex" and too costly.

The Holidays Act affects everything from your public holidays and annual leave through to how much sick pay you get and how much you're paid while you're off work.

The terms of reference for the review include:

• the calculation of relevant daily pay (how much you get paid while on leave)
• trading annual leave for cash at the employee's request, and
• transferring the observance of public holidays

The working group is made up of five members, including two nominations each from the Council of Trade Unions and Business New Zealand.

The CTU's two representatives are CTU president Helen Kelly and Dairy Workers Union secretary James Ritchie. Both have the support of the EPMU.

The other three members strongly represent employer interests. Business NZ's appointees are Paul Mackay, who is employer lobby group's policy manager, and Philip Doak, in-house legal counsel for Air New Zealand on employment matters.

The chair of the group is Peter Kiely, a senior National Party office holder and partner in the law firm Kiely Thompson Caisley, which acts on behalf of Air New Zealand in its industrial disputes with the EPMU.

The working group is to submit its report by December 2009.

The CTU says it is committed to working towards making the Holidays Act easier to operate for everyone, but will vigorously oppose any moves to remove or undermine work rights.