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The Fire Service is to appeal against an Employment Court ruling that is set to cost it millions of dollars.
The court ruled its contract with professional firefighters breaches the Holiday Act because it doesn't properly allow them to take a day in lieu for working on public holidays.
That could mean additional costs for the service of up to five and a half million dollars a year, as well as back pay.
The Fire Service Commission says it considered organisational factors and took legal advice regarding the interpretation of the Holidays Act before deciding to appeal.
Commission chief executive Mike Hall says despite the decision to appeal, he expects there to be continuing discussions with the Professional Firefighters' Union.