Frequently asked questions
We update our FAQs regularly. If you have any further questions, please email HolidaysAct@dia.govt.nz
What is the Holidays Act?
The Holidays Act 2003 sets out how payment for leave and final pay is to be calculated and paid. This includes any leave type such as annual leave, bereavement leave, sick leave, etc.
What is the issue?
Compliance issues with the Holidays Act are common in both the public and private sectors because many payroll systems have not aligned with the Act. So, like many other organisations, the Department’s payroll system in some instances may not have calculated a person’s holiday pay correctly. We are working to fix this by calculating and making remediation payments to anyone who has been incorrectly paid. We are also working on making our payroll system fully compliant with the Act.
How far back will remediation payments go?
We are required to go back six years from the date of a claim or six years from the date the Department became aware of the Holidays Act issues. The Department has agreed with the Labour Inspectorate at MBIE to remediate as far back as 1 January 2011.
Will all former employees receive remediation payments?
About 65% of employees that were employed and paid by the Department any time since 1 January 2011 are due a remediation payment. Typically, this has affected employees who have changed the number of days they worked per week or received substantial overtime payments.
If former employees are entitled to remediation payments, how much will it be?
The amounts can vary wildly depending on the circumstances for each individual employee, e.g. their length of service, amount of overtime worked, or variation of days worked in a week during their time at DIA.
Has anyone been overpaid?
Yes, however, there will be no action to seek recovery of overpayments.
What do I need to do to receive remediation payments I’m owed?
Please fill in the former employee contact form (PDF, 10KB), and we will let you know if you are affected or not. If you are, we will ask you for some more information. Once this has been received, verified and updated in our system we will notify you of the amount due and when payment will be made. All this will be explained further after you have sent us the form.
If I am entitled to a remediation payment, when will I receive it?
We need to receive a few documents to ensure we have the right person and confirm your tax code, Kiwisaver and the correct (NZ based) bank account details. Once that is done the you will be advised how much the remediation payment will be and when the payment will be made.
Why is my remediation payment different to others?
Individual circumstances can result in different amounts owing for similar employees because of differences in length of service, hours of work, overtime hours, amount of leave taken and final pays.
What is the Department doing to make sure the issues are addressed and are not repeated in the future?
Work is expected to be completed by July 2021 to ensure the Department is compliant with the Holidays Act and payments are correct going forward.
