COVID-19 Alert Level 1 update: We are actioning posted mail once a week. This includes returned verification documentation and general enquiries. If possible, please send your information to our email address: HolidayActPayments@justice.govt.nz.
For the first round of remediation payments, we've completed calculations for more than 9,000 current and ex-employees. Of these, more than 7,000 will receive a payment.
There are many reasons why it's taking time to figure out if an individual employee is owed money:
There are a number of factors that determine who will be affected by the Holidays Act remediation. Some examples of these are:
The remediation calculations have been performed with a week being in line with the pay period, which is Thursday to Wednesday.
A day is defined as your work pattern hours for the particular instance of leave. For example, if you had a day of sick leave on Thursday and your work pattern for a Thursday is six hours, then that's what constitutes a day for the calculation of the Relevant Daily Pay or Average Daily Pay for that instance of sick leave.
An action for payment of arrears under s 131 of the Employment Relations Act is subject to a six-year limitation period from the date on which the Ministry first became aware of the issue, which was April 2015.
We know these may seem like small amounts. However, we are both legally and morally obliged to ensure you receive any payment owing to you.
The Employment Relations Act requires the Ministry to go back six years from the date the problem was first identified. The Ministry first identified the potential problem in April 2015, so payments for errors will be calculated from 2 April 2009. The end date for payment calculations will be the date the Ministry becomes compliant with the Holidays Act and makes final payments.
The first round of remediation payments covers the period 2 April 2009 to 2 October 2019.
The start date of 2 April 2009 is six years prior to the date the Ministry became aware of the problem. The Ministry became aware of the potential problem in April 2015. The 6-year time period is established as the limitation period in the Employment Relations Act.
An end date was needed to enable us to calculate the first round of remediation payments, and we selected your last day of duty.
If you moved to the Ministry from LSA or PDS, your commencement date with the Ministry was 1 July 2011 and as a result your remediation period commences on 1 July 2011.
If you joined the Ministry after 2 April 2009, then your remediation period begins on the date you commenced employment with us.
If you are eligible for a payment, we’ll contact you via email or letter using the details we currently hold.
This letter will request specific documentation to be returned to us and a payment will be made to your nominated bank account after we have verified your details.
If you haven’t heard from us and believe you may have been affected, then please complete our online webform and we'll be in touch.
Earnings history and leave patterns are unique, so each employee's payments have been recalculated individually for the remediation period of 2 April 2009 to your last day of duty. As a result, each payment amount will be different.
The average payment value to former employees is $375.
The remediation payments have been treated as an ‘extra pay’ for tax purposes. We encourage you to contact other relevant organisations, such as Inland Revenue, for advice about whether this payment affects any agreements you have with them about your current earnings, benefits, child support or any other matters.
The Inland Revenue website contains useful information on the tax treatment of lump sum payments such as an arrears payment. You can also contact Inland Revenue directly on 0800 227 774.
KiwiSaver deductions and contributions will be calculated as part of the remediation payment.
Other superannuation contributions won't be calculated or deducted due to the way in which they're calculated.
Student loan repayments will be calculated as part of the remediation payment.
The next round of remediation payments will be made once the Ministry has implemented the new payroll system and is fully compliant with the Holidays Act 2003. At this stage, we expect this to be around mid-2020.
The dates this payment will cover will be 3 October 2019 until the date the Ministry is compliant with the Holidays Act 2003.
Where a former employee is deceased, and would have been eligible for a payment, contact will be made through their known Executor of Estate. If you're aware of this information and you wish to advise us of the details, please contact the team at HolidayActPayments@justice.govt.nz and we'll work through the appropriate process.
If you wish to donate your payment, you'll still need to follow the same process to claim your payment. Please note that payment can only be made to the person that payment relates to.
In line with section 6, 7 and 8 of the Unclaimed Monies Act 1971, where monies have not been claimed they will be passed onto the Inland Revenue Department (IRD).
We can only make payment into a New Zealand bank account; this nominated account does not have to be an account held in your name.
We will contact the known Executor of Estate listed, using Ministry records to obtain the contact information. Once we’ve made contact, we’ll request the verification documents to be returned to us before a payment is made.
Covid 19 Alert Level 1 update: We are endeavouring to make payments within 6 weeks of receiving your verification documentation. In some cases it may take a little longer. Please be patient with us. Thank you.
We produced our letters in bulk to make it easy for us to send them out as we needed to. The information contained in the letter is correct.
During your employment with the Ministry you worked in a team that we haven’t yet been able to complete remediation calculations for, as the data is held outside the Ministry’s payroll system.
If you are entitled to a remediation payment this will be known once we have completed all our calculations, which we expect to be complete mid-2020.
We will be in touch with you once we are ready to commence payments.
We're in the process of sending correspondence out to eligible former employees, and we understand that some people might want to verify the source as trustworthy before they respond.
If you receive an email, it should only come from HolidaysActPayments@justice.govt.nz
We'll only ask you to send your information to our above email address or the following postal address:
Holidays Act Payments Team
C/- National Office
Ministry of Justice
If you have a query that hasn't been addressed through the information on these pages and the commonly asked questions above, you can contact us at HolidaysActPayments@justice.govt.nz