“Employers are obligated to remediate employees for current & historic underpayments”

Government Taskforce May 2018

Addressing Holidays Act non-compliance, the Labour Inspectorate payroll audits & investigations are currently* showing over 88% of organisations have required compliance activities, with the remaining cases still under consideration. Non-compliance remediation payments from these employers who have paid arrears totals over $108m, averaging $655 per affected employee (*as reported at Dec 2019).

MBIE continues to produce guidance on the Holidays Act 2003, because in their own words “it has become apparent that non-compliance is a significant issue.” It was also recently reported that out of all the organisations the Labour Inspectorate had looked into over the last few years, all had degrees of non-compliance, with many major breaches.

The difficulty for companies to maintain compliance to the Holidays Act 2003 is an issue that has been publicly highlighted many times recently. In order to properly understand the full extent of a company’s non-compliance requires the detailed analysis of a large volume of complex data. Any re-calculation estimates must consider a plethora of regulation rules, permutations and leave scenarios.

There are also many more holiday pay articles hitting the press with increasing regularity – all diverse employers with a failure to have correctly complied with their leave entitlement obligations.

Don’t wait around for an Enforceable Undertaking to drive the timeline with which you must adhere. Use the time & space you now have to pre-empt an audit, & take a considered approach.

As a specialist consultancy, we are experts in extracting & engineering your data – particularly to fit the complex business rules, calculations & amalgamations required under the Holidays Act.