Holiday Pay Remediation
The Holidays Act 2003 is a complex piece of legislation that governs various leave types, including annual leave, sick leave, bereavement leave, alternative days and public holidays that is currently in the process of being fixed (MBIE) . Due to the complexity of the act many NZ employers including IRD and MBIE as well as many others have encountered challenges in applying the legislation correctly. Given the large number of part time and casual employees who’s schedules and availability change throughout the year, these calculations for CityFitness become particularly complex.
In 2018, the government established a taskforce to review and recommend improvements to the Holidays Act. The recommendations from that review are being used to retrospectively calculate leave payments and we have therefore conducted a comprehensive audit of all 2200+ current and former employees dating back to February 2017 to ensure our compliance with the Act. We are working with NLC payroll consulting to manage the remediation process.
The audit results indicated that while many employees received more than their legal entitlements, others were underpaid in certain situations. While we will not take steps to collect any overpayments, we are now actively taking steps to ensure any underpayments are rectified.
Am I entitled to a Payment?
If we have sent you an email with a unique reference number, you are entitled to a remediation payment. You will need to provide us with your details through our remediation portal. As some payments may be very low, you may decide that the amount you are owed is not worth continuing with the process of uploading your document details. See the process below.
Check the amount of your entitlement first
Use the unique reference number that you received in your email to access the portal. You will be asked a set of questions to prove your identity. You will then be able to see the remediation payment amount. If you do not wish to claim your payment, there is a box to tick to confirm you are choosing not to proceed with the claim.
Information required to collect payment
If you are a current employee, you will need your IRD number and a current passport or drivers licence for proof of identity. If you are a former employee you’ll need the following information:
- Your IRD Number
- Tax Code declaration form – IR330
- A Kiwisaver deduction form – KS2 (if you’re currently a Kiwisaver member)
- Your bank account details (must be a NZ bank account number)
- The reference number from the communication we sent you
- A marriage, birth or dissolution of marriage certificate if your name has changed during the period stated
- A current driver licence or passport, a passport is required for anyone currently residing overseas
Steps to complete in the Portal
- Log into the portal here.
- Click ‘First time logging in/reset password’
- Enter your unique reference number (provided in the email) then click ‘Submit’
- On the ‘New Password’ page, answer both security questions then click ‘Submit’
- Your new password will be displayed on this page in bold; copy your password then click ‘Login Page’. This will take you back to the ‘Sign In’ page
- Enter your reference number then paste in your password and click ‘Sign In’
- If you are a current employee, please follow the instructions in the 'Current Employee' box. If you are a former employee, please follow the instructions in the 'Former Employee' box.
Once you have submitted, NLC payroll team will verify your information and contact you if anything is missing.
What happens next
Once your information has been verified and is complete, NLC payroll team will confirm payment date.
How to contact us
If you have any questions or cannot access the portal, please contact us at: cityfitness@nlcpayroll.com
Holiday Remediation FAQs
1. What is the holidays Act?
The Holidays Act is the act that sets out the minimum leave entitlements that must be provided to all employees in New Zealand (such as annual holidays, public holidays, sick leave, bereavement leave, alternative holidays, and family violence leave), and how payment for these leave entitlements must be calculated.
2. What is the problem, and how did we know about it?
Due to the complexity of the act many NZ employers including IRD and MBIE as well as many others have encountered challenges in applying the legislation correctly. In 2018, the government established a taskforce to review and recommend improvements to the Holidays Act. The recommendations from that review are being used to retrospectively calculate leave payments and we have therefore conducted a comprehensive audit of all 2200+ current and former employees dating back to February 2017 to ensure our compliance with the Act. We are working with NLC payroll consulting to manage the remediation process.
3. How much will my remediation payment be?
Remediation payments will vary from person to person. The amount depends on the individual’s gross earnings history and leave patterns. You will be able to look up your remediation payment on the NLC portal.
4. Are the payments taxed?
Yes, the amount that you see in the portal is the gross amount before tax.
5. What if I was overpaid?
CityFitness is not recovering any overpayments.
6. What if I have not been contacted?
Not all employees who worked for CityFitness during the remediation period are affected. An email will only be sent to current and former employees who are eligible for a remediation payment. Former employees are being contacted using the contact details on record at the time of their departure from CityFitness.
Current and former employees who are not eligible for a remediation payment will not be sent an email. If you do not hear from us but believe you may be eligible for a remediation payment, please email the NLC payroll team at: cityfitness@nlcpayroll.com