Holiday Act Compliance (HAC) project | Te Whatu Ora | Health New Zealand | Hauora a Toi Bay of Plenty

Holiday Act Compliance (HAC) project

Holidays Act Compliance (HAC) project

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About HAC

As an employer, Te Whatu Ora - Health New Zealand Hauora a Toi Bay of Plenty must ensure its employees are paid appropriately when they take leave under the Holidays Act 2003.

The Act covers pay and entitlements for all types of leave and public holidays for employees in New Zealand.

FAQs

Audits of the 20 organisations then known as 'district health boards' (DHBs) conducted by the Ministry of Business Innovation and Employment's (MBIE) Labour Inspectorate found non-compliance with the Holidays Act 2003 at several DHBs.

DHBs generally, including the one that has since become Te Whatu Ora - Health New Zealand Hauora a Toi Bay of Plenty, acknowledged that there had been non-compliance and agreed that payroll systems needed to be improved (rectified) and any underpayments paid to employees remediated.

A memorandum of understanding (MOU) between MBIE, DHBs, and the unions was developed and signed. Under this MOU, we are undertaking a review and rectification project of the end-to-end payroll system and a subsequent remediation process.

The agreed solution between the unions and all DHBs (including the organisation that has since become Te Whatu Ora - Health New Zealand Hauora a Toi Bay of Plenty) is to make remediation payments to current and former employees to adjust for any incorrect calculations dating back to May 2010, and for future payments to be calculated and paid correctly in line with the agreed MOU.

Te Whatu Ora - Health New Zealand Hauora a Toi Bay of Plenty is approaching this task using the 'Framework for Local DHB Holidays Act Review' document developed under the agreed MOU.

The unions are represented in a steering group and project team set up to oversee the process.

There are three key phases.

  1. Review - this was underway and aimed to be completed by September 2020. It involved testing our payroll systems against a 'baseline interpretation' agreed by DHBs and unions to identify the extent of non-compliance.

  2. Rectification - fixing any identified issues of non-compliance with holiday pay payments and applying processes to ensure future payments comply with the Holidays Act 2003.

  3. Remediation - calculating and paying any amounts owing to current and former employees arising from any identified non-compliance. There will be a national process for former DHB employees (e.g. those who worked for us at any time since 1 May 2010) to register.

We will review every employee and former employee's payments back to 1 May 2010 as agreed under the MOU.

Initial analysis indicated that there may be about 4000 former BOPDHB (Te Whatu Ora - Health New Zealand Hauora a Toi Bay of Plenty) employees affected, and about 3800 current employees who may be affected. Potential impact on employees will vary depending on their work patterns.

Any payments will be made as part of the remediation process, which is in phase three of this project. It is absolutely vital that we get it right, and the complexity of achieving this is significant.

If there are any historical overpayments related to holiday pays, no action will be taken to reclaim those funds.

The emphasis is on Te Whatu Ora - Health New Zealand Hauora a Toi Bay of Plenty paying out what people are owed. However, this process will help us to identify if there are any risks of overpaying people, and we will correct this moving forward.

We will keep this page regularly updated on progress as we move through the three phases of the process outlined above.

If you are a current employee, we don't need you to do anything. If you are identified as being owed money, we will already have your account details and you will receive a statement outlining the adjustments once we have calculated them.

As part of the remediation phase, we will make employees aware of possible impacts on tax brackets, allowances, student loans, tax payments, superannuation etc.

We will be asking for your help to let former employees know about this, if you are in contact with them.

Former employees who worked for the BOPDHB (Te Whatu Ora - Health New Zealand Hauora a Toi Bay of Plenty) any time from 1 May 2010, will be able to register their up-to-date contact details on a national website.

That website will be well-publicised, and a link will be placed on this page as soon as it is available. It will include FAQs for former employees.

We will make reasonable efforts to contact any former employee who is owed a payment, whether or not they have provided their up-to-date contact details.

Current employees DO NOT need to register on the national website, unless they have worked for another former-DHB since 1 May 2010.

Where are we up to in this process?

We have been analysing the issues from our review report, identifying fixes, and working with our union partners to agree how solutions will be implemented.

We remain in the rectification phase of the project.

Phase 2 Rectification – fixing any identified issues of non-compliance with holiday pay payments and applying processes to ensure future payments comply with the Holidays Act 2003.

How many issues were identified?

Eleven issues were identified as non-compliant in the audit review. Of those:

  • 8 issues have had solutions shared and agreed with our union partners
  • three of the 11 non-compliant issues are subject to national questions and pending answers.

What is the next stage?

Phase 3 - Remediation – which is calculating and paying any amounts owing to current and former employees arising from any identified non-compliance. We are extracting data regarding holiday payments and preparing for recalculations.

There will be a national process for former DHB employees (e.g. those who worked for BOPDHB or Te Whatu Ora - Health New Zealand Hauora a Toi Bay of Plenty at any time since 1 May 2010) to register.

When is remediation going to happen?

This can take place after we have received advice about the issues being discussed and determined at a national level.

The questions for these issues are common across all former DHBs. Therefore, a consistent approach is required. The answers to these questions are taking some time to be finalised and will affect our remediation dates.

We will advise you when we have established a remediation amount to be paid.

A timeline for communication and payments will be provided once the national queries have been answered.

If you have any queries related to the BOP Holiday Act Compliance Project, our email is HolidaysAct@bopdhb.govt.nz

Union members can also contact their respective unions if they have questions/concerns.

Union contacts

Union members can also contact their respective unions if they have questions/concerns.

Union Contact Phone Email
APEX Luke Coxon - Luke@cns.org.nz
ASMS ASMS Industrial Team 04 499 1271 asms@asms.nz
ETU Bertie Ratu 0800 186 466 support@etu.nz
MERAS Jill ovens, Co-leader (Industrial) 021 598 530 jill.ovens@meras.co.nz
NZNO Paul Mathews 0800 28 38 48 nurses@nzno.org.nz
PSA Cherene Warbrick-Daniel  07-5798298 Cherene.Warbrick-Daniel@bopdhb.govt.nz
PSA PSA Organising centre 0805 367 772 enquiries@psa.org.nz
RDA Luke Coxon - Luke@cns.org.nz
STONZ Kate Clapperton-Rees 022 493 1609 Support@stonz.co.nz