andrewNZ: The law sets minimum standards and pay rates. To some extent, the employer can do things differently as long as the employee is better off.

In this case, 2.5 days in leiu would appear better off, but my gut feeling is that it's not legal, and I have a nagging feeling you're not better off somehow.

The act states an employee must be paid at least t1.5 and get a day in leiu. Usually, if there is wiggle room for payment in alternative ways, it is at least indicated. In this section, I didn't see any indication of alternative reward structures.

Thinking while I type here. Part of the problem with leiu days is the employer can partially dictate when you take them.
The more I think about it, the more I think an employment tribunal would not like this.


Neither, I expect, would a Labour Inspector from MBIE be very impressed.
The relevant sections of the Holidays Act appear to have been deliberately drafted to leave no wriggle room for employers. They must pay time and a half (or more) for any time worked on a Statutory Holiday, and must give an additional day in lieu.