Holidays Act claims

Why were my payments incorrect in the first place?

The Holidays Act is complicated and many organisations, including us, had not met all the obligations it sets out. We apologise for this and we are working to put things right as soon as possible, both for our current and former employees.

You already have my details– why do I need to complete this?

Your details may have changed. For example, your bank account, tax code and even your name might be different from when you were employed by us. We need to make sure we have the most up-to-date information to process your claim quickly and correctly.

How will I know if I'm affected?

If you worked at the Council at any time between 1 April 2011 and December 6, 2021, and haven’t heard from us, we want to hear from you. Please register a claim so that we can check whether you're eligible.

We are able to tell from our records who is and who is not affected by the miscalculation of leave payments. If your hours were varied and your pay changed from payslip to payslip then it is more likely that you may have been underpaid. It’s important to understand that not all employees were incorrectly paid.

What if I left the Council quite recently?

If you left the Council after 6 December 2021, you don’t need to register a claim. We have held your contact details on file and will be in touch to let you know if you are due a payment and when to expect it.

I now live overseas – can I still make a claim?

Yes, you can make a claim but, if you don't have a New Zealand bank account, we'll need some extra documentation from you, including proof of your bank account in the country where you live, showing your account number and SWIFT/IBAN number. Your bank must be able to accept payments from New Zealand.

Remember, your payment amount will be affected by the exchange rate at the time it is processed, and your bank may charge a fee for accepting an overseas payment.

I know someone who may be eligible but they're not capable of making a claim. Can I register on their behalf?

If a family member worked here during the affected period but is unable to make a claim because of illness or disability, or they have died, you can make a claim on their behalf. To register on behalf of another person, you will need to provide some extra documentation to verify the claim, such as:

• A will, where probate has been granted.
• Enduring power of attorney documents.
• Tax documentation
  • Complete the IR330 Tax Declaration form, adding the other person’s details.
  • You’ll need to know their tax code. If you need help, call Inland Revenue.
  • Complete the K2S Kiwisaver form, adding the other person’s details.

Do not sign the IR330 on their behalf – leave this part blank.

We've set up a claim form to make the process as easy as possible for you. If you’ve received an email or a letter from us about this you will have a unique reference number. Please use this number to register your claim.

How much will I get?

The calculations are based on your individual earnings history and leave. Once you’ve registered and sent us the information we need, we’ll check whether you were underpaid and if you were, we’ll let you know by how much, and what you’ll receive as gross back pay. Not all employees were under paid and we’ll also let you know if you are not owed a payment.

How will I know the amounts are correct?

We’ve partnered with EY as they have the expertise to carefully review all employee leave records, payments, and earnings data for any period worked from 1 April 2011. We recalculated the leave payments to identify any that were not correct. The calculations have gone through many checks and thorough testing to ensure they’re correct now.

The Ministry for Business, Innovation and Employment (MBIE) is fully aware of our calculation methods and our processes.
EY has worked with other organisations which also miscalculated leave payments under the Holidays Act 2003, so is experienced in this work.

How will you protect my private information and how long will you keep it?

We’ll collect and use your personal information only for settling any back payment you’re entitled to under the Holidays Act 2003. We are legally required to keep this information on file for seven years. Our privacy statement is available on our website.

If I'm owed back pay, when will I receive it?

Once we’ve checked the details you provided, we’ll calculate and confirm with you any payment you’re entitled to. Once confirmed, we’ll let you know when to expect the payment. Our systems achieved compliance with the Holidays Act 2003 on 6 December 2021, so payments may be owed to any former staff employed up to that date, from 1 April 2011.

People who registered for the first stage of payments (1 April 2011 to 31 December 2019) will have received any payments owed for that period. Some of those people may be eligible to apply again for payments owed from the second period (1 January 2020 to 6 December 2021).

If I'm owed something, will I also receive interest?

No. This is a genuine error and we’ve worked closely with MBIE and EY to be confident that many of the decisions we’ve made exceed the minimum requirements of the Holidays Act 2003. We believe these would easily cover any interest owed.

Will my KiwiSaver employee and employer contributions apply?

Yes. If you're a member of a KiwiSaver scheme, make sure you complete the KS2 form. We’ll match your contribution to a maximum of three percent.

Will student loan payments be deducted?

Yes, this is a legal requirement. Please see the next question about tax and deductions.

If I'm owed anything, how will this be taxed?

Any amount owing will be paid as a lump sum and taxed at the rate required by Inland Revenue. Other deductions (KiwiSaver, student loan) will be made as required by law. You’ll be asked to complete a Tax Code Declaration form (IR330) and to upload it when making your claim.

What happens if you overpaid my leave? Will I have to pay it back?

This project is looking at underpayments only.

Can I ask you to donate my payment to charity?

Other organisations going through this process have been asked by former employees whether the payment can be transferred to a charity instead. Unfortunately, for system reasons, we're unable to do this. We must pay the amount owed to the former employee.