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
How do I know your calculations for my payment are correct?
What dates does this cover?
When will Goodman Fielder payroll system and processes change?
If I am entitled to a back payment how will this be taxed?
Does the union know about these holiday pay back payments?
Will my KiwiSaver employee and employer contributions apply?
Do the back pay calculations include student loan deductions?
Do the back pay calculations account for child support deductions?
Will the back pay calculations affect my Working for Families entitlements, or disability allowance?
Privacy
I have some more questions. Who can I contact?
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
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.
