You may have read about problems some private and government organisations have had with interpreting and applying the Holidays Act. In response to this publicity, we have had our payroll system provider, MYOB, audit our payroll system.
The audit found that some of the settings in our system were incorrect for the calculation of leave such as; sick leave, bereavement leave and alternative holidays.
As a result of this audit, we corrected the settings in the system and also contracted MYOB to recalculate every annual leave, sick leave, bereavement leave and alternative leave calculation from March 2008 until we corrected the settings in the system last year (2017).
We are contacting all impacted team members, but for further information or if you believe you may have been affected please complete the online claim form immediately or contact us on 0800 660 660, between the hours of 8:00am – 5:00pm, Monday to Friday. Please be aware our team are unable to tell you the amount you will be paid over the phone as your eligibility to a remediation payment must be verified through the claim process.
WHO / HOW MUCH / PAYMENT TIMINGS
What are the payroll issues?
The issues relate to entitlements under the Holidays Act 2003 and primarily impacts permanent team members who work (or have worked) variable and unpredictable work patterns or work (or have worked) above their contracted hours. In some but not all cases, these team members have not received correct payments and remediation needs to occur. Remediation has been calculated back to March 2008.
The Holidays Act legislation is complex with varying rules and calculations for different leave types. This issue is not isolated to NZ Safety Backwoods and is a wide issue affecting many employers.
Who is impacted?
The issue relates to a number of past and current permanent team members, employed between March 2008 to April 2017.
Affected team members (past and present) will receive a letter from us with information about their remediation payment and how they can have it paid. Not all team members who worked during this period are affected, as their holiday pay was calculated at the correct or higher rate. For past team members, we are using the last known contact details we had for them when they left the business. If you believe you are eligible and have not been contacted, please complete the online claim form or call us on the number provided on this page.
How much will my payment be?
Everyone’s earnings history and leave patterns are unique and, as such individual calculations for each team member have been completed. As a result, each payment amount is unique and NZ Safety Backwoods will write to each of the affected team members and advise of the amount owed. If you believe you are eligible and have not been contacted, please complete the online claim form or call us on the number provided on this page.
What happens if I have been overpaid during this period?
NZ Safety Backwoods is not recovering any overpayments as part of the remediation. If you have been overpaid no further action will be taken by NZ Safety Backwoods.
When will I receive the money owed in my bank account?
Current team members have already been paid as we have all the necessary information to process these payments. We have automatically processed your remediation payment into the bank account that your ordinary salary or wages are deposited to.
Past team members will be paid as soon as possible upon receipt of your completed claim form and necessary documentation.
Will interest be paid on top of my remediation payment?
Interest will not be paid on top of the remediation payments; however, we will apply inflation at the Reserve Bank of New Zealand CPI rate to ensure the time value of money is reflected in your remediation payment. We considered this to be fairest approach and is in addition to what we are required to do.
Why has it taken so long to make these payments?
We appreciate that it has taken time to determine and process the remediation payments. Our focus has been on investigating the issue thoroughly and ensuring the remediation payment calculations are accurate for each team member. We have engaged several third parties to verify our calculation.
Will I receive a payslip once the remediation payment has been made into my bank account?
Yes, current team members have received a payslip per the usual process which is accessible via ESS now the payment has been made, which is consistent with how all payslips are delivered.
Past team members will have a payslip emailed or mailed (as advised by you) to their nominated email or mailing address upon payment of their remediation payment.
Will I receive a detailed breakdown of how my remediation payment has been calculated?
The calculation of remediation payments is complex involving a large amount of data, and as such detailed calculation break downs will not be provided with the letter detailing the amount of your remediation payment. However, if you wish to obtain a detailed statement of your calculation this can certainly be arranged on request.
What documents do I have to submit to receive my payment?
Past team members will need to lodge a claim form, which can be lodged immediately online. The following documentation is required to be uploaded to complete your claim:
-Proof of identity: copy of birth certificate, passport, certificate of citizenship, immigration NZ visa, drivers license or HANX 18+ card, please note if your identity document has two sides both sides must be provided;
-Tax code and IRD number: a signed Tax Code Declaration Form (IR330); and
-if contributing to Kiwi Saver a signed IRD Kiwi Saver Deduction Form (KS2)
The claim form and lodging of these documents can be completed electronically via the online claim form. Otherwise a claim can be lodged by email by downloading the PDF form, printing it, completing it and scanning or photographing the completed form along with the above supporting documents.
Current team members did not need to provide any documentation as we already have current bank account, Kiwi Saver/AMP and taxation details.
PAST OR DECEASED TEAM MEMBERS
Why do past employees need to complete a form or send documentation?
To ensure you receive the money owed to you we must obtain proof of identify. Information relating to your Kiwi Saver/AMP fund, taxation and bank account details are needed to be able to process your payment.
If I’m a past employee what happens after I lodge my claim?
Your documentation will be reviewed and verified by our HR and Payroll team. Once we have confirmed your claim and documentation is in order we will process your remediation payment to your nominated back account as soon as possible. A payslip detailing the payment made to you as well as any Kiwi Saver and/or AMP contributions will be provided via email or mail.
What happens if I am a past employee and I have changed my address?
Please make a claim either online, via email or call us on the number provided on this page for assistance.
What happens if I am seeking payment on behalf of a deceased team member or a team member for whom I hold power of attorney?
To ensure we pay the money owed to the appropriate people we are required to verify your identity and confirm that you are authorised to act on behalf of the estate or team member.
If you believe you may be entitled to a remediation payment on behalf of an estate or a team member whom which you hold power of attorney, please call us so we can work with you to confirm your eligibility to a remediation payment and process the payment for you
TAX, KIWISAVER AND OTHER BENEFIT IMPLICATIONS
How will the remediation payment affect my tax and any other benefits?
Current team members have had income tax withheld at the appropriate withholding rate for the FY19 tax year.
Past team members will have withholding tax deducted in accordance with the tax code you provide to us as declared in your signed Tax Code Declaration Form (IR330).
We encourage you to discuss with the relevant organisations how your remediation payment may impact child support, benefits or other such matters you may receive. If you have any concerns about this, please call us on the number provided on this page.
What happens to my Kiwi Saver and/or AMP contributions?
Current team members have had Kiwi Saver and/or AMP contributions on their remediation payment based on your contribution set up already provided to us.
Past team members are required to provide their Kiwi Saver/AMP details and nominate their contribution percentage to Bunnings and this will be deducted from your remediation payments and paid to your Kiwi Saver/AMP fund.
Should no Kiwi Saver or AMP nomination be made, no contributions will be made and the payment made to you will not have Kiwi Saver or AMP contributions deducted.
Will NZ Safety Backwoods make Kiwi saver and/or AMP contributions on top of my contribution?
Yes, should you make a team member contribution from your remediation payment, NZ Safety Backwoods contribute up to a maximum cap of 6% across both Kiwi Saver and AMP. NZ Safety Backwoods contribution is an added benefit above your remediation payment and will only be paid for those team members that make a team member contribution to Kiwi Saver and/or AMP.
What steps have been taken to ensure my future Holiday Pay is correct?
NZ Safety Backwoods has worked with our Payroll provider MYOB and the calculation error has been corrected. This correction was made early in 2017. Therefore, no future Holiday Pay calculating errors will occur.
Who can I contact for further information?
Please call us on 0800 660 660, Monday to Friday, between 8:00am – 5:00pm. Or email HR@nzsafetyblackwoods.co.nz