Holidays Act Remediation
If you were employed by T&G between 21 January 2011 and 30 June 2020, you may be entitled to a remediation payment for incorrectly calculated holidays and leave. This includes seasonal and casual employees, as well as permanent employees.
T&G has proactively checked its compliance with the Holidays Act and discovered that we weren’t compliant in some areas, and that in other areas we exceeded the Holidays Act. While we haven’t been investigated, we engaged an independent consultant to complete a thorough review because we want to get this right for our people (both current and former employees), while ensuring future compliance.
Frequently Asked Questions
WHAT IS THE NZ HOLIDAYS ACT 2003?
The Holidays Act 2003 is a piece of legislation that sets out the minimum entitlements to holidays and leave which employers are required to provide to their employees in New Zealand. It sets out how both permanent and casual employees are entitled to annual leave, bereavement leave, alternative leave, public holidays and sick leave. Click here to find out more about the Holidays Act on the Government’s legislation website.
WHY IS IT BEING REVIEWED?
The Holidays Act is a complex piece of legislation. In 2018, the Government announced a review of the Holidays Act to bring it up-to-date with modern workforce practices.
While the review is on-going, the Government has discovered that the legislation has been interpreted differently by a number of New Zealand businesses. The Government’s Labour Inspector is currently investigating larger organisations for compliance, as well as companies with high volumes of variable hour workers.
While T&G hasn’t been investigated, we wanted to proactively check our compliance with the Holidays Act. We engaged an independent consultant to assist us with this and have discovered that we weren’t compliant in some areas, while in other areas we exceeded the Holidays Act.
We want to get this right for our people (both current and former employees), while ensuring future compliance. That’s why we’re taking all of these steps.
WHAT CAUSED THIS PROBLEM?
The Holidays Act is complicated and many companies, including us, had not met all of the required obligations set out in it. We apologise for this. The issue relates to how a range of allowances and entitlements have been interpreted and implemented into DataPay. The specific areas that require remediation date back to 21 January 2011 and are primarily related to the payment of statutory holidays, and the rate of payments for annual, bereavement, alternative holidays, public holidays and sick leave. We have prioritised our remediation programme, so we can work as quickly as possible to resolve this for current and former T&G employees.
WHO IS IN SCOPE FOR REMEDIATION?
|In scope||Out of scope|
|People||Current and former employees who were employed between 21/01/2011 to 30/06/2020||Current and former contractors|
Fixed term or temporary
|Time period||All statutory leave transactions and entitlements from 21/01/2011 to 30/06/2020||All statutory leave transactions and entitlements prior to 21/01/2011|
CAN I SEE THE CALCULATION YOU USED TO DETERMINE THE AMOUNT I’M OWED?
The calculation of remediation payments is complex and involves a large amount of data. Therefore, we’re unable to provide detailed breakdowns. However, if you wish to obtain a summary of your calculation this can be arranged on request.
WHAT DO YOU NEED FROM ME TO MAKE PAYMENT?
For current employees, payment will be made to you in a separate pay run into the bank account we use for your pay.
For former employees, we need to verify your identity, including your bank account details to make payment. By logging onto the remediation portal you’ll be led through the easy to follow process step by step.
You’ll need the following information before starting the process on the remediation portal;
- Your IRD number
- Tax code declaration (Found on the second page of IR330)
- Your bank account details
- Reference number from the letter we, T&G, sent you
- Marriage / birth / dissolution of marriage certificate if your name has changed during the period stated
- Current driver licence or passport (a passport is required for anyone currently residing overseas)
I’M A FORMER EMPLOYEE BUT I’VE CHANGED EMAIL/POSTAL ADDRESS AND DIDN’T RECEIVE ANY CORRESPONDENCE FROM YOU. WHAT DO YOU NEED FROM ME TO ENSURE I’M INCLUDED AS PART OF THE REVIEW PROCESS?
Please email TGHolidayPayroll@nlcpayroll.com with your details. If there are any discrepancies, we’ll contact you to work through these.
WHAT CAN I TELL AN EX COLLEAGUE WHO NO LONGER WORKS AT T&G?
We want to ensure that anyone who has previously worked at T&G between 21/01/2011 and 30/06/2020 is reimbursed for any outstanding monies. Please ask them to email TGHolidayPayroll@nlcpayroll.com and we’ll work through the process with them.
I’M SEEKING PAYMENT ON BEHALF OF A FORMER EMPLOYEE THAT HAS PASSED AWAY / FOR WHOM I HAVE POWER OF ATTORNEY. HOW DO I ENSURE THEY’RE BEING INCLUDED AS PART OF THE REVIEW, AND THAT I’M KEPT INFORMED OF THE PROGRESS?
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. Please email TGHolidayPayroll@nlcpayroll.com and we’ll work through the process with you.
HOW WILL YOU PAY ME IF MY BANK ACCOUNT DETAILS HAVE RECENTLY CHANGED?
If you are a current employee, we’ll be using the bank account we have on file for you, where you currently receive your wages.
If you are a former employee, you are asked to provide your current bank account details when you complete your verification form to ensure the any payment goes to the right place.
I NOW LIVE OVERSEAS HOW ARE YOU HANDLING INTERNATIONAL PAYMENTS?
If you have a New Zealand bank account, any payment owing under this Act will need to be made into that account. If you do not have a New Zealand bank account, please indicate that in the portal and you will be given instructions on how to proceed.
HOW DOES THIS PAYMENT AFFECT MY TAX OBLIGATIONS?
We encourage you to contact Inland Revenue or your local tax authorities 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.
Please see attached Useful information on the tax treatment of lump sum payments
You can also contact the IRD directly on 0800 775 247 or from overseas on +64 4 978 0779.
WHEN WILL I RECEIVE PAYMENT?
We expect to process remediation payments to former employees within one month of verification. If you have not received payment by then please email TGHolidayPayroll@nlcpayroll.com.
WILL YOU MAKE KIWISAVER CONTRIBUTIONS AS PART OF THE PAYMENT?
If you are a KiwiSaver member, your back payment will be less your KiwiSaver/employee superannuation contribution. You will also receive the company contribution.
If you are a current employee, this will happen automatically, but if you are a former employee you need to provide your KiwiSaver information as part of completing your verification form.
WILL MY BACK PAYMENT INCLUDE INTEREST OR COMPENSATION?
We will not be paying interest or compensation because the issue has led to employees receiving both underpayments and overpayments. We have decided not to seek the repayment of overpayments and to instead resolve all underpayments.
WHY AREN’T YOU PAYING STAFF ANY INTEREST OR COMPENSATION PAYMENTS?
A number of factors have been considered in deciding whether it was appropriate to pay an additional amount in the form of interest or compensation. These factors included the following:
- Given the amount of money owed to staff, it would not be fiscally responsible to pay interest or compensation.
- T&G is not legally obliged to pay interest or compensation in this situation.
- Where possible, assumptions have been made in favour of employees, or the most generous method of calculation has been used.
IF I HAVE BEEN OVERPAID, WILL T&G BE SEEKING REPAYMENT?
T&G will not be seeking repayments for anyone who has been overpaid.
HAS THE ISSUE BEEN RESOLVED SO IT DOESN’T HAPPEN AGAIN?
Following a review by Ernst & Young (EY), and by working with NLC, a payroll consultancy company that specialises in Holidays Act remediations, we are confident our systems are now compliant and this issue will not reoccur.