Holidays Act Remediation

NZ Holidays Act 2003 – Komatsu Remediation 2024

There has been significant media attention on compliance with the Holidays Act 2003, a complex legislation with varied interpretations and rules for different leave types. This nationwide issue has affected numerous organisations across various sectors, Komatsu NZ remains committed to regular audits of its payroll system and processes.

Previous Remediation, 2019:

In April 2019, Komatsu NZ initiated an audit of its payroll system and processes to ensure compliance with the Holidays Act. This audit, spanning from April 2019 back to April 2012, revealed discrepancies in leave payment calculations. Subsequently, Komatsu NZ implemented changes to how annual leave is calculated in its payroll system. Remediation payments were issued to affected current and former employees in July 2020.

Current Remediation, 2024:

Recently, an external audit by an external partner Integrity1 specifically related to payments for family violence, bereavement, alternative, parental, and sick leave (FBAPS). As a result, it was highlighted further issues in the configuration of the Payroll system which needed to be rectified. The payroll system has been adjusted to rectify these issues and effective from 1 October 2024 the system should be behaving as expected.

From July 2020 onwards, Komatsu NZ has recalculated holiday and leave payments for all affected employees, ensuring compliance with the Holidays Act. Adjustments have been made to correct any previous underpayments or overpayments.

Eligibility for back payments varies based on factors such as length of employment, leave taken, timing, commissions, bonuses, and working patterns. While some employees may receive back payments, others may not see any changes. Overpayments, where identified, have also been corrected without requiring repayment.

We now want to contact all former employees of Komatsu NZ who worked with the company since 1 July 2020. 

Holidays Act payment webform

If you're a former Komatsu employee (employed between July 2020 and October 2024) and want to enquire about your remediation payment, please complete the webform with your details and submit.

Your information will be sent directly to our Payments Team. They'll contact you using the details provided, to confirm whether a payment is owed to you.

Privacy Disclaimer:

By providing your personal information via this webform, you consent to Komatsu using that information in relation to monies owed to individuals under the Holidays Act 2003. We will not use or disclose personal information collected in this process for any other purpose, and any personal information provided to us will be treated in accordance with the Privacy Act.

FAQs

Questions and answers

  • What are the payroll issues?

    The issues relate to entitlements under the Holidays Act 2003. The Holidays Act legislation is complex with varying rules and calculations for different leave types, and this has resulted in some instances where the way we have been accruing, and calculation leave payments has been incorrect.  Remediation has been calculated back to July 2020.  Payroll process changes have been made to ensure ‘go-forward’ compliance with the Holidays Act.

  • Who is impacted?

    A number of former and current team members, employed between July 2020 and now.  Affected team members (former and current) will receive communication from us with information about their remediation process.   Not all team members who worked during this period are affected, as their holiday pay was calculated at the correct or higher rate.

  • How much will my payment be?

    Everyone’s earnings history and leave patterns are unique and, as such individual calculations for each former and current team member have been completed. As a result, each payment amount is unique.  It is important to note that not all employees will be entitled to a payment and in several instances employees have been overpaid and underpaid over an extended period.  In these situations, we will be consulting with employees on an individual basis.

  • When will I receive the money owed in my bank account?

    Current team members will be paid into the bank account that your ordinary salary or wages are deposited to.

  • How will my remediation payment affect tax/benefits/other?

    Your back payment will be taxed as a lump sum payment, considering the tax code provided to us.  Further information about lump sum payments can be found on the IRD’s website.  We encourage you to contact relevant organisations to discuss any impact this remediation payment might have on child support, benefits or other such matters i.e. IRD, WINZ etc.

  • Why has it taken so long to make these payments?

    We appreciate that it has taken time to determine and process the remediation payments. Our focus has been on investigating the issue thoroughly and ensuring the remediation payment calculations are accurate for each team member. We have engaged several third parties to verify our calculations as well as working closely with the Labour Inspectorate.

  • Will I receive a payslip once my remediation payment has been deposited into my bank account?

    Yes, current team members will receive a payslip once the payment is made.

  • Will I receive a detailed breakdown of how my remediation payment has been calculated?

    The calculation of remediation payments is complex involving a large amount of data, and as such detailed calculation break downs will not be provided with the letter detailing the amount of your remediation payment. However, if you wish to obtain a detailed statement of your calculation this can certainly be arranged on request.

  • I have had changes throughout my employment with Komatsu New Zealand, how have these been managed?

    Our third-party provider has looked at all the different scenarios for our employees, both former and current, and ensured these were considered across the recalculation process.

     

    This includes:

    • Moving from Waged to Salaried (or vice versa)
    • Changing between Full Time, Part Time or Casual (including fixed term)
    • Periods of Parental Leave
    • Breaks in employment

  • What documents do you require?

    Current team members do not need to provide any documentation as we already have your current bank account, KiwiSaver/superannuation and taxation details.

     

    Former team members will need to lodge a claim form, which can be lodged immediately online. The following documentation is required to be uploaded to complete your claim:

     

    • Proof of identity: copy of birth certificate, passport, certificate of citizenship, immigration NZ visa, drivers license or HANX 18+ card, please note if your identity document has two sides both sides must be provided;
    • Tax code and IRD number
    • if contributing to KiwiSaver a;
    • IR330 and KS2 forms will be automatically created during your application which you can download copies of

     

    The claim form and lodging of these documents can be completed electronically via the application website-  webform 

  • How will you protect the privacy of my information and how long will you keep it

    We will only collect and use your personal information for the purposes of settling any payment under the Holidays Act remediation and will retain this information for 7 years, as required by law. The website for logging applications has encryption of all data, encrypted data is held in only New Zealand and or Australia for backup reasons. Security access policies are restricted and in place.

  • Do current team members need to complete a claim form

    No, current team members do not need to complete a claim form we already have all your current details on file. We will automatically process your remediation payment into the bank account that your ordinary salary or wage is deposited to.

  • How will my remediation payment affect my tax and any other benefits?

    PAYE, as well as other deductions such as student loan repayment and KiwiSaver contributions, will automatically be deducted at the time of payment. For current employees these deductions will be based on the information already held in our payroll files.  For former employees these deductions will be based on the information provided to us. 

     

    We encourage you to discuss with the relevant organisations how your remediation payment may impact child support, benefits, or other such support you may receive.  You can contact the IRD at any time online through myIR or you can call the IRD on 0800 227 773.

  • What happens to my KiwiSaver contributions?

    Current team members will have KiwiSaver contributions on their remediation payment based on your contribution set up already provided to us.

    Former team members are required to provide their current KiwiSaver details and nominate their current contribution percentage to Komatsu New Zealand, and this will be deducted from your remediation payments and paid to your KiwiSaver fund.

  • Will the remediation payment affect my Working for Families entitlements, or disability allowance?

    If you are owed money and a payment is made to you, this may affect your Working for Families entitlement or disability allowance for the year ended 31 March 2025. Please contact Inland Revenue on 0800 227 773 to discuss your situation if necessary.

  • What steps have been taken to ensure my future holiday pay is correct?

    We appreciate the implications of this issue and understand the importance of ensuring it does not happen again. Future compliance with the Holidays Act has been a major focus of the work we have completed. We have worked closely with the Labour Inspectorate to ensure our systems and processes are as robust as possible to comply with the Holidays Act.  Payroll process changes have been made to ensure ‘go-forward’ compliance with the Holidays Act.

  • Who can I contact for further information?

    Please email us on payroll@komatsu.com.au.   

  • Where can I read more about the Holidays Act?

    You will be able to find more information on the following government websites:

Former or deceased team members

Questions and answers

  • Why do former team members need to complete a claim form and provide additional documentation?

    To ensure you receive the money owed to you we must obtain proof of identify. Information to confirm your identify and KiwiSaver, taxation and bank account details are needed to be able to process your payment.

  • If I’m a former team member what happens after I lodge my claim form?

    If you do not have any money owed, you will be notified when you lodge the claim. If you do have money owed, your documentation will be reviewed and verified by our third-party provider. Once they have confirmed your claim and documentation is in order, we will process your remediation payment to your nominated bank account as soon as possible. A payslip detailing the payment made to you as well as any KiwiSaver and/or AMP contributions will be provided via email or mail.

  • What happens if I’m a former team member and I have changed email and or postal address, how will you contact me?

    Please make a claim online -  webform 

  • What happens if I’m seeking payment on behalf of a deceased team member or a team member for whom I hold power of attorney?

    To ensure we pay the money owed to the appropriate people we are required to verify your identity and confirm that you are authorised to act on behalf of the estate or team member.

     

    If you believe you may be entitled to a remediation payment on behalf of an estate or a team member for whom you hold power of attorney, please email us at payroll@komatsu.com.au so we can work with you to confirm your eligibility to a remediation payment and process the payment for you.