Holidays Act Remediation

The issues relate to how employee leave payments have been calculated under the Holidays Act 2003. The Act is complex legislation which requires specific calculations for different types of leave. For employees working rostered shifts that require frequent changes of hours and days of work the calculations are particularly complex.

The issues identified relate primarily to the payment of:

• Annual leave
• Bereavement leave, Family Violence leave
• Sick leave
• Alternative holidays
• Public holidays
• Final pay/ Termination pays

The WFA remediation period is for those people employed by WFA from 1 September 2017 to 13 March 2024. There will also be a small second remediation run to cover the period from 14 March to when the payroll system is updated to ensure compliance with the Act.

Please note that not all staff who worked for WFA during this period are due a payment, as they have been paid correctly.

An action for payment of arrears under the Employment Relations Act 2000 is subject to a six-year limitation period from the date on which WFA first became aware of the issue which was 7 September 2023.

WFA's data analytics partner, built a rules-based data engine that is specifically designed to recalculate annual and FBAPs leave for all employees, current and former, as well as termination payments for former employees. Payroll data for the remediation period was extracted and uploaded into the data engine, split into component parts, validated and tested. The engine then runs recalculations to compare what was paid for a leave type, against what should have been paid, based on set payroll parameters.

We are only able to run the data recalculation model once we have verified that you are a former employee. Therefore we are not able to tell you if you are due a remediation payment at all, and if you are, how much it will be. You need to be aware that some employees do not have any remediation due (all their leave payments were calculated correctly), and some employees are only due minor adjustments (ie less than $10).

To check if you are entitled to a payment, you need to enter your details into this Claims Portal. Thank you for your understanding.

WFA are also contacting former employees using the last contact details we had for people when they left our employment. If you don't believe we have your correct contact details, you can update your details via this Portal to ensure correspondence reaches you.

No you are not. Volunteers are not included in this process as the provisions of the Holidays Act do not apply to them. Casual staff are not included as they receive their leave payments on a Pay-As-You-Go basis, with a percentage payment made on top of their hourly rate.

To check if a deceased person's estate or someone you act for is due a remediation payment, you'll need to verify your identify and provide documentation confirming you are authorised to act on their behalf. You can submit this documentation via our portal.

The email address we have for you may not be your current address. We encourage you to register on this Portal and update your details so we can correspond with you.

Your earnings history and leave patterns are unique to you and therefore, each payment must be recalculated individually for the time you worked for WFA during the remediation period.

Please note that WFA has made the decision not to take any action to offset or seek recovery of any overpayments made to employees.

It is important that we pay the right payment to the right person. We will need information from you to ensure the payment goes through to your bank account smoothly. We will need the following documentation from you:

• Bank account details for payment: a bank slip, a bank statement.
• Tax Code and IRD number: a signed IR330.
• Proof of Identity: birth certificate, passport, certificate of citizenship, immigration NZ Visa, drivers' licence, or HANZ 18+ card (and any supporting change of name if this is different from when you were employed by us).
• A signed Kiwisaver declaration form (KS2) or a signed Kiwsaver Opt-out form (KS10).
• Evidence of your Authority to Act on behalf of someone else (if relevant) – Signed letter of Authority to Act, Signed Estate Document/s.

The personal information you provide and payment details will be kept secure and treated in accordance with the Privacy Act.

These remediation payments are being treated as "backpay" or a lump sum payment, this means your Tax code and Kiwisaver percentage, (if you are an active member) need to be applied.

• The payment will be reported to IRD as earnings in the current tax year.
• IRD clearly states we cannot record this payment against previous tax years.

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

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

No, we can only make payments to New Zealand bank accounts.

In line with sections 6,7 and 8 of the Unclaimed Monies Act 1971, where monies have not been claimed, generally after 5 years, they will be passed onto the Inland Revenue Department.

We know these very small amounts may seem to be a lot of effort for not much reward, however we are legally obligated to ensure you receive any employment-related underpayments due to you.

No. Despite the project identifying that some individuals received an overpayment, WFA will not be seeking to offset or recover any overpayments identified.

Both AWUNZ and FIRST unions has been fully briefed on the remediation project, and we will continue to engage with them as needed.

Please contact the Project team if you have any questions or queries by emailing: holidaysreview@wfa.org.nz.