Massey University has become aware, along with other government agencies, crown owned entities and large employers that our payroll systems and processes have led to some miscalculated pay entitlements for some people under the Holidays Act 2003 (The Act).
The calculations for current staff are complete and ready for payment.
Calculations for former employees are underway and we expect to start contacting all affected former employees by the end of February 2022 to advise of any amount they are owed.
Remediation period
The remediation period is between 8 May 2012 and 22 August 2021.
Who can get payment
You may be eligible for a payment if you were employed by Massey at some time between 8 May 2012 and 22 August 2021.
Not all employees over that time were affected. The issues largely relate to employees who:
- had fluctuating work patterns
- worked additional hours or
- were paid additional allowances.
A payment is owed where there is a difference between what was paid for the leave day and what should have been paid if the correct calculation has been made.
The total calculated is a gross amount, from which income tax will be deducted, in accordance with income tax requirements. Inland Revenue can advise employees on the possible tax and other financial impacts of receiving a payment.
Payments will be made where the amount calculated is $20 or more. Amounts less than this will not be paid due to the administrative cost of making the payments.
Identify if you can get payment
Current employees will be sent an email in early October advising whether they are eligible for a payment.
In February 2022, former employees who are entitled to a payment will be sent a letter by post or email to their last known address or email address from last time of employment by Massey.
If you did not receive this letter and believe you are entitled to a payment, you can submit a claim on the Claim Form on the Massey website. This will be available from 1 February 2022.
Register for payment
If you have received a letter from us saying you are due for a payment you should register for this payment using the online form.
If you have not received a letter, you should read this page to determine if you believe you are entitled to a payment.
Past employees who have moved address
If you know of past employees who have moved address or are now overseas – and previously had fluctuating work patterns, worked additional hours or were paid additional allowances – you can:
- contact them and direct them to the information on the Massey website
- tell them to send their contact details by email to leave.remediation@massey.ac.nz
Donating payments
You can elect to donate some or all your payment to the Massey University Foundation’s Student Hardship Bursary programme. More details are available on the Massey University Foundation website.
Current employees should have signed and completed the donation form on the staff intranet last year, before 13 October 2021.
Past employees who wish to donate part or all of their repayment to the Student Hardship Bursary programme can arrange this when they make their claim. The donation form will be available from 1 February 2022.
Why payments are being made
Ministry of Business Innovation and Enterprise (MBIE) audited the University’s leave payments and identified some areas of non-compliance with the Act.
Most employers and system suppliers had a common interpretation which has been identified as not aligned to the intent of the Act.
Following the Audit Massey has entered into an agreement with MBIE to:
- correct history back to 2012 and
- correct our current system calculations going forward.
Not all employees over that time were affected. The issues largely relate to employees who had:
- fluctuating work patterns
- worked additional hours or
- were paid additional allowances.
During 2019/2020 a very complex algorithm was built which recalculates the correct historic payments for staff and recalculates leave balances. This will be used for making retrospective payments to current and ceased staff.
Documents you need to make a claim
If you are a former employee, we will send a letter to your address or email. Once received you should complete the online Claim Form, which will be available online from 1 February 2022.
You will need to provide the following.
- Proof of identity – passport, birth certificate or certificate of citizenship.
- Tax code and IRD Number – a signed Tax Code Declaration (IR330) available from Inland Revenue.
- Bank account details – a bank document confirming bank account number – deposit slip or letter of confirmation.
If you did not get a letter or email
Past employees
If you have not received notification of eligibility for a payment by the end of February 2022, this may be because:
- we did not have your current contact details, or
- you are not eligible for a payment.
If you believe you should receive a payment, please complete the Claim form.
Current employees
All current employees who are eligible for a payment were paid on 20 October 2021. Current employees who are not eligible for a payment would have been sent a letter advising of this.
If you believe you should receive a payment and have not received a letter to confirm this, you should send an email to leave.remediation@massey.ac.nz.
Payment amounts
If you are entitled to a payment and have verified your identity, we will send advice of the payment amount at the time of payment.
Any payments will be less PAYE and Kiwi Saver/UniSaver, if you have a current KiwiSaver or UniSaver membership.
Interest or compensation
We will not be paying interest or compensation because the issues have led to employees receiving both underpayments and overpayments.
Paying back overpayments
You will not be asked to repay or offset any overpayment found relating to the Holidays Act changes.
When payments will be made
Current employees
Current employees received payment up to 22 August 2021 in the normal payrun on 20 October 2021.
Past employees
For past employees entitled to a payment the planned payment dates are shown in this table.
Table last updated 30 May 2022.
| Cut off date for validation of form and documents | Payment dates |
|---|---|
| 5 July 2022 | 14 July 2022 |
| 19 July 2022 | 28 July 2022 |
| 2 August 2022 | 11 August 2022 |
| 16 August 2022 | 25 August 2022 |
| 30 August 2022 | 8 September 2022 |
| 13 September 2022 | 22 September 2022 |
| 27 September 2022 | 6 October 2022 |
| 11 October 2022 | 20 October 2022 |
Note: there will be no payments in June 2022. Future dates will be added if required.
Claiming on behalf of others
You can make a claim on behalf of a deceased person or someone who you hold Power of Attorney.
You will need to provide documentation to verify your identity and to confirm you are authorised to act on behalf of the estate or person.
You should complete the online claim form and add the proof of identity and authority documents.
Tax impacts on payments
Tax on these payments for current employees will be automatically managed in the Payroll so current employees do not need to advise of any taxation requirements.
For former employees, you will need to provide a tax code declaration with a tax code that can be used for this payment when you complete the claim form.
We encourage you to contact the relevant organisations such as Inland Revenue for advice about whether your remediation payment affects any agreement you have with them about:
- your current earnings
- benefits
- child support or any other matters.
The Inland Revenue website has useful information on tax treatment of lump sum payments such as this: Lump sum payments (ird.govt.nz)
You can contact the IRD directly on 0800 775 247 for NZ residents or +64 8 952 5914 for past and present employees currently living overseas or by using your MyIR account.
Correcting bank, address or contact details
If you are a current employee, we will be using the bank account we have on file for you, where you receive your salary or wages payments.
If you are a former employer, you are asked to provide your bank account details when you complete your verification form (form available from 1 February 2022).
You can check if we have your current address and contact details by emailing the correct details to: leave.remediation@massey.ac.nz
After you lodge a claim
For former employees, once we receive and verify your documentation, your payment will be processed and deposited into your nominated bank account.
Dates for payment are based on the validation dates. If we need more information from you to process your claim we will get in touch.
Delays in organising payments
You may be wondering why it has taken so long to organise these payments.
The Holidays Act 2003 is a complex piece of legislation to apply. We have worked at length with our payroll software provider to correct the payroll system.
Once the issues were identified we undertook a thorough investigation because we wanted to ensure that all our employees have been paid their entitlements and a robust process is implemented to ensure the back payments and future payments are correct.
Resolving ongoing issues
The resolution of the issues was actioned in the Payroll/HR system from 23 August 2021 in the payroll paid on 8 September 2021.
We have been working with a Ministry of Business Innovation and Employment inspector to validate the extent of the issues and ensure that remediation meets legislated requirements.
Union involvement
The Union has been consulted on the approach to arrears payments and resolving the issues going forward.
Contact us
If you have any other questions please email us at: leave.remediation@massey.ac.nz