New Zealand Holidays Act Information for current and past MidCentral DHB employees.
Background to Holidays Act Remediation:
In early 2020, MidCentral District Health Board (MidCentral DHB) started its Holidays Act Compliance Programme. Like most NZ employers, there were areas identified where the DHB was not fully compliant with the Act.
MidCentral DHB has set up the Holidays Act Compliance Programme in accordance with the Memorandum of Understanding, ensuring each of the three key process steps were incorporated in order to achieve compliance as per the agreed baseline document and framework. These process steps are outlined below:
i) Review Process
MidCentral DHB will follow the framework document and conduct its own end-to-end system review in line with the baseline document to validate and review key payroll issues relating to compliance with the Holidays Act which may impact on the employer and its employees. This work has been completed.
The outcome of this review, and subsequent recommendations, will be shared with the Inspectorate and employee representatives.
ii) Rectification Process
A key outcome of this process is to ensure MidCentral DHB's payroll system and processes are compliant with the Holidays Act, and to secure compliance sign-off from the Ministry of Business, Innovation and Employment (MBIE). MidCentral DHB will rectify the breaches identified. This may include manual process changes wrapped around the electronic payroll system to ensure employees receive their minimum entitlements in the future, in compliance with the Holidays Act.
iii) Remediation Process
MidCentral DHB is to calculate arrears owed to all current and past employees from 1 May 2010 in line with the baseline document interpretations of the Holidays Act. All entitlements and payments must be calculated sequentially by date as each entitlement affects the gross earnings of the next one calculated. A list of affected employees (by name or employee number), and arrears owed to them, is to be provided to the Inspectorate. Alternatively, depending on the outcome, the unions and the DHB may agree to use the prescribed estimation approach. Any monies owed to employees (current and past) need to be paid to these employees as soon as practicable.
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