Our Holidays Act payroll remediation

We have remediated our current staff for historic payroll issues. We are now turning our attention to affected former staff.

The information below provides more background and instructions on how to register as a former employee who may be affected.

Find out if you are affected

If you were employed by us or one of our legacy agencies between 21 August 2008 and 27 June 2018, you may be affected by the payroll remediation issues outlined below.

To check if you are affected, complete the contact form below. Once we have validated your details we will be in touch.

Former employee contact form

What payroll issues we are addressing

The issues relate to entitlements under the Holidays Act 2003, primarily to the entitlement and payment of:

  • annual holidays
  • bereavement leave
  • alternative holidays
  • public holidays
  • sick leave.

The time period that applies

The remediation period is 21 August 2008 to 27 June 2018.

We became aware there could be issues in August 2014 and agreed to start remediation from 6 years prior (ie, 2008) as part of our Enforceable Undertaking with the Labour Inspectorate.

The period for which calculations have been completed varies across individuals. It depends on when you started to be paid using our current payroll system:

  • If you were employed by the former Department of Labour, calculations have been performed from 21 August 2008 or your start date at the Department of Labour, if it was after this date.
  • If you were employed by any of our other legacy agencies, the calculations have been performed from the date you started to be paid through the current payroll system.
  • If you began employment with us, the calculations have been performed from your first day of duty.

About payment

How much you will be paid

Earnings history and leave patterns are unique, so each case has been assessed individually and each payment amount will be different.

When you will receive your payment

We expect to make payments to former employees who’ve been affected in 2019, once we’ve sourced and validated the required details.

Superannuation and student loan repayments

Once we confirm you’re affected, we’ll ask you to provide the relevant superannuation contribution and tax details.

Consequences for tax or benefits

We encourage you to contact the relevant organisation such as Inland Revenue for advice about whether your remediation payment affects any agreement you have with them about your current earnings, benefits, child support or any other matters.

The Inland Revenue website has useful information on the tax treatment of lump sum payments such as an arrears payment.

Useful information on the tax treatment of lump sum payments(external link)

You can also contact the IRD directly on 0800 227 774.

Claiming on behalf of a deceased person, or someone for whom you hold power of attorney

You will need to provide documentation to verify your identity and to confirm you are authorised to act on behalf of the estate or person.

See our contact details below on how to get in touch with us.

About our employee calculations

Like many organisations, we’re addressing non-compliance with some aspects of the Holidays Act 2003, resulting from a complex mix of process, policy, practice and system configuration factors.

In line with the Enforceable Undertakings we agreed with the Labour Inspectorate in March and October 2016, we’re completing detailed data corrections and remediation calculations. These ensure people receive at least minimum entitlements when they’ve taken annual holidays or other types of leave.

The Labour Inspectorate has accepted our sample employee calculations and we’ve also completed an independent quality assurance process.

Labour Inspectorate letter about sample employee calculations [PDF, 56 KB]

More information

You can read more about our processes, data corrections and calculations.

Our processes and calculations for payroll remediation

Glossary of pay remediation terms

Contact us if you have questions

Email our Payroll Review Centre if you have any additional questions.

PayrollReview@mbie.govt.nz

Our specialist team will work with you to resolve any questions or concerns.