Business NZ 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.

Business NZ's Paul Mackay says leave's always been accrued, but there were other rules attached.

"The Government has simplified it by saying - you accrue leave or you earn leave as you go, it's effectively money in your bank and you will take out from that bank of leave when you want it."

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