Holidays Act Remediation
Following a comprehensive review of our payroll system, we have identified a small percentage of current and former employees who have received incorrect payments for statutory leave covered by the Holidays Act 2003.
This is a relatively common issue that many New Zealand businesses have had, and we are doing everything we can to fix and remediate the issue.
What is the Issue?
The Holidays Act 2003 is a complex piece of legislation with varying calculations and entitlements for different leave types. As a result, many New Zealand employers have found it challenging to apply the legislation correctly when calculating holidays and other forms of leave.
The New Zealand Government has established a taskforce to review and provide recommendations to improve the Holidays Act. In the meantime, we’re doing everything we can to fix and remediate the issue.
What is QV Doing?
Following reports of other organisations experiencing similar issues, we conducted a thorough review of our payroll system and processes to ensure that they comply with the Holidays Act 2003.
As a result, we identified that there may be some payroll related issues that, over time, have resulted in some of our people receiving incorrect payments for statutory leave covered by the Holidays Act 2003. Statutory leave relates to Annual Leave, Bereavement Leave, Alternative Holidays, Public Holidays and Sick Leave.
Where underpayments or under entitlements have been identified, we will do whatever we can to fix it. We’re contacting our former employees and asking them to provide us with their details; once we’re able to verify that information, we’ll reimburse them appropriately.
FAQs
We’re contacting former employees that worked for QV between 01 June 2013 to 11 November 2020 that are due a remediation payment as a result of QV’s Holidays Act Remediation review.
If we have made contact with you and directed you to this webpage, please complete the following forms and documentation and send to the QV payroll team via email at HolidaysActReview@qv.co.nz
Please include either your drivers license or passport photo for identification.
Once we receive your information, we’ll verify it, and then the QV payroll team will get in touch with you via email to confirm next steps and any remediation payment owing.
The remediation covers the time period between 01 June 2013 and 11 November 2020.
The QV payroll team will verify your information and then get in touch with you via email to confirm next steps and any remediation payment owing.
The issues relate to entitlements under the Holidays Acts 2003, primarily to the entitlement and payment of:
- Annual Holidays
- Bereavement Leave
- Alternative Holidays
- Public Holidays
- Sick Leave
A thorough and detailed review has taken place by the QV payroll team, who have been able to reconcile and resolve payments back to June 2013. They do this by reviewing and reconciling all payments received in relation to the Holidays Act 2003 during the remediation period.
If you are a former employee of QV and are entitled to a remediation payment, the QV payroll team will contact you by 30 April 2021 using the last contact details available when you left QV. This may be via text, email or letter.
Not all people who worked for QV during this remediation period are affected. So if we’re not in touch with you, then all your payroll calculations are already in line with the Holidays Act 2003.
If you don’t hear from us, but you believe you’re entitled to a remediation payment, please contact the QV payroll team via email at HolidaysActReview@qv.co.nz
QV is not recovering any overpayments as part of this remediation.
Remediation payments will vary from person to person, depending on your individual earnings, history and leave patterns. We’ll be able to let you know once we have verified your information.
As the remediation payment forms part of an earnings payment, PAYE (tax), as well as other deductions such as student loan repayment and KiwiSaver contributions - will automatically be deducted at the time of payment.
These deductions will be based on the information provided to us on the Former Employee Details Form, Employee KiwiSaver (KS2) and Employee IR330 form.
If you are a current KiwiSaver member, QV will provide the legislated employer contribution as required.
Your remediation payment will be taxed as a lump sum payment.
On the Former Employee Details form, we need you to let us know what lump sum tax rate you would like deducted from your remediation payment. The Former Employee Details Form contains the rate options, and more information around how to choose your rate can be found on the Inland Revenue website.
It’s best to make contact with Inland Revenue or Work and Income directly to discuss any impact this remediation payment might have on child support, benefits, or other such matters.
Further information about lump sum payments can be found in this IRD factsheet: IR1046 Getting lump sum payments.
If you receive a communication from QV and would like to know any details of your calculation, please email the QV payroll team at HolidaysActReview@qv.co.nz.
Before processing any remediation payments, we’ll need to verify your identity and confirm that you are authorised to act on behalf of the estate or person.
If you believe you may be entitled to a remediation payment on behalf of an estate or a person for whom you hold power of attorney, please contact the QV payroll team via email at HolidaysActReview@qv.co.nz so we can work with you to confirm your eligibility and process the payment for you.
For further information, please contact the QV payroll team via email at HolidaysActReview@qv.co.nz
The New Zealand Government has established a taskforce to review and provide recommendations to improve the Holidays Act. Click here for more information.