Background

As you may be aware, issues with the Holidays Act 2003 are impacting a large number of organisations.  The Holidays Act is a very complex piece of legislation which can be interpreted in a number of different ways and has varying rules and calculations for different leave types.  This means many organisations have miscalculated holiday pay.

The issues primarily concern how a range of employee leave entitlements have been interpreted and calculated.

 

Goodman Fielder’s Holidays Act remediation process

Goodman Fielder has completed a comprehensive review of its approach to payments under the Holidays Act, with the support of external independent advisors (Ernst & Young and Sentio) and the Ministry of Business, Innovation and Employment (MBIE) - which regulates the Holidays Act.  The review found some issues with the calculations of payments relating to annual holidays, bereavement leave, alternate leave, public holidays and sick leave.

Goodman Fielder has now recalculated relevant holiday and leave payments from 7 February 2011 through to 30 April 2019, and is in a position to identify both past and present employees who have been affected by the previous errors in our holiday pay approach.  Back payment recalculations have been carried out so that each holiday and leave period has been calculated consecutively in accordance with the Holidays Act, and any previous miscalculations resulting in mistaken underpayments or overpayments have been corrected within these calculations.

Many of our past and present employees will be eligible to receive a back payment, but not everyone.  Whether someone is entitled to a back payment depends on the individual factors listed below:

  • How long you have worked for us
  • Amount of leave you have taken
  • Timing of that leave
  • Relevance of bonuses and extra allowances
  • Your working patterns

Because of these factors, entitlements to back payments (if any) will vary. Many employees will not have had any underpayment.

Goodman Fielder has been in the process of fixing its systems and processes to ensure compliance with the Holidays Act going forward.  This system and process change was completed on 9 December 2019.  Therefore, some of our employees may be entitled to a second back payment for the period from 1 May 2019 until the 9th December 2019 when our updated payroll systems went live.

 

Frequently Asked Questions

We’ve used both Sentio and Ernst & Young’s expertise to review all affected employees’ leave records, payments, and earnings data back to 7th February 2011 and recalculated the back payments. The Labour Inspectorate at the Ministry of Business, Innovation and Employment (MBIE) has further checked and approved their methodology. This has been a very thorough process to make sure you’re getting what you’re entitled to. Should you require the full breakdown of your calculations, we can provide this to you upon your request.

If you’re due to receive a back payment, it will cover the period on and from 07 February 2011 (or your employment start date if this occurred later) through to 30 April 2019 (or your termination date if this occurred earlier). Goodman Fielder has agreed to these dates with the Labour Inspectorate to ensure you receive what you’re legally entitled to. Some employees may be entitled to a second back payment for the period from 1 May 2019 until the 9 December 2019 when our updated payroll systems went live. These employees will be contacted by Goodman Fielder at a later date.

As you can appreciate, the Holidays Act is complex so these processes have taken time to resolve, we can assure you we are working hard to get things right.

Our payroll system and internal processes have been updated to make sure we’re complying with the Holidays Act by 31 December 2019.  Our updated payroll system went live on the 9th December 2019.

Past employees will need to complete a Tax Code Declaration form (IR330) to ensure Goodman Fielder has up to date details to enable the tax to be calculated accordingly. You can check the IRD website at www.ird.govt.nz to see if your total earnings, including your holiday back payments for this financial year, take you into a different tax bracket. You may also want to seek independent tax advice.

Yes. Goodman Fielder will communicate the issues resulting in incorrect calculations of payments related to annual leave, bereavement leave, alternate leave, public holiday, and sick leave to all associated unions. We will also communicate the work undertaken to ensure employees receive their correct entitlements in both back pay and for future entitlements.

Yes, these will apply if you’re contributing to KiwiSaver when the payment is made. If you’re a member of a KiwiSaver scheme, ensure you complete the KS2 form.

Yes, for past and present employees who have a student loan tax code.

No, they don’t. You may need to advise the IRD that your family income has changed. You can do this anytime online through myIR at www.ird.govt.nz or you can call the IRD on 0800 227 773. The Inland Revenue website has a useful factsheet for employees on the receipt of a lump sum payment such as an arrears payment that can be found using the following link: IR1046 Getting lump sum payments - employees

Your holiday pay back pay may affect your Working for Families entitlement or disability allowance for the year ended 31 March 2020. Please refer to the above link or contact Inland Revenue on 0800 227 773 to discuss your situation if necessary.

We will only collect and use your personal information for the purposes of remediating any payment under the Goodman Fielder Holidays Act Remediation and will retain this information for 7 years as required by law.

Please email any questions to HolidayActInfo@goodmanfielder.co.nz and we’ll come back to you as quickly as we can.

 

Additional Documentary Requirements For Past Employees

For past employees, the following documentation needs to be provided before your back payment can be made to you:

  • a personal record update form including :
    • proof of identity (eg copy of driver’s license, passport or birth certificate);and
    • bank account details (eg deposit slip or statement with account name; and
  • a signed Tax Code Declaration Form (IR330); and
  • if you are contributing to Kiwisaver, a signed IRD KiwiSaver Deduction Form (KS2) or if you are not contributing to Kiwisaver a signed IRD KiwiSaver Opt-Out Form (KS10)[1].

Personal Record Update Holiday Act Remediation

Employee IR330

Employee KiwiSaver KS2

KiwiSaver Opt-Out KS10

You will be required to forward the above online forms and supporting documentation and return to HolidayActInfo@goodmanfielder.co.nz to enable your identity to be verified and payment made, based on your current details.

How do I claim on behalf of a deceased former employee, or former employee for whom I hold Power of Attorney?

We will need you to provide documentation to verify your identity and to confirm that you are authorised to act on behalf of the former employee’s estate.  Please contact HolidayActInfo@goodmanfielder.co.nz and we will get in touch with you to progress this.

 

[1] If using KS10 IRD KiwiSaver Opt-out Form; please leave items 10 and 11 blank for your employer, Goodman Fielder New Zealand Limited to complete.

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