A review of the Holidays Act will look at whether workers can cash in or transfer their public holidays to another day.
The Government has put together an advisory group including members from business groups and unions to review the 2003 Act.
Labour Minister Kate Wilkinson says the Holidays Act has been widely criticised for its complexity and its generic approach, which she says results in significant compliance costs.
The terms of reference for the review include looking at how the Act is applied to businesses that run 24 hours a day, seven days a week, and the calculation of relevant daily pay.
Members of the group include Council of Trade Unions president Helen Kelly and Paul Mckay from Business New Zealand.