Holidays Act remediation payments

As a result of complexities in the Holidays Act 2003, many organisations in New Zealand, including Toka Tū Ake EQC, have discovered some holiday calculations were incorrect due to the act being misinterpreted. 

Employees most likely to be affected are those whose hours changed during their employment at Toka Tū Ake EQC (The Earthquake Commission) between November 2013 and August 2020.

We are committed to doing the right thing and ensuring everyone is paid what they are owed.

In the week beginning 21 November 2022, we have contacted affected current and former employees using the last known email address we have.

If you haven’t heard from us but think you may be due a remediation payment, please complete the webform below and we will review your submission.

You can also find answers to some frequently asked questions (FAQs), below.

Frequently asked Questions (FAQs)

1. How do I know if I am entitled to a remediation payment?

Former employees who are entitled to a remediation payment have been sent an email to their last known personal email address from their time of employment with Toka Tū Ake EQC. If you did not receive this email and believe you are entitled to a remediation payment, please complete the webform and we will review your submission.

Affected current employees have been contacted on their Toka Tū Ake EQC staff email address and should not use the webform

2. Who is owed a remediation payment?

You may be eligible for a remediation payment if you were employed by Toka Tū Ake EQC between November 2013 and August 2020.

Employees who are most likely to be affected are those who made changes to their patterns of work (e.g. decreased or increased their hours) during their employment at Toka Tū Ake EQC during this period.

3. How much will my remediation payment be?

Each payment has been individually calculated as history of earnings and holiday entitlements will differ by person.

If you are entitled to a remediation payment and we have verified your identity, a payslip will be emailed to you after payment has been made.

The majority of people are owed less than $100 (gross). Nearly half of people are owed less than $10 (gross). The minimum remediation payment amount will be $5 (gross).

4. When will the remediation payment be made?

For former employees, once we have verified your eligibility and confirmed your identity, we will make the remediation payment as soon as possible to your nominated bank account.

Generally, this would be in the next fortnightly pay run, though this is subject to Toka Tū Ake EQC shutting down over the Christmas and New Year period.

5. What happens after I complete the webform?

Our team will then review the information you have provided and contact you by email if we need anything further. If we have all the information we need and have verified your identity, you will receive the remediation payment and we will send you a payslip by email. 

6. Why are you paying out such small amounts?

Our obligations are to act in good faith towards our employees, under the Employment Relations Act and as a good employer as a member of the Public Sector. We are committed to doing the right thing and making our best efforts to contact current and former affected employees.

7. Why do former employees need to provide extra documentation?

We need to verify your identity to ensure that we are paying the correct amount to the right person. We also need information relating to your bank account, tax and KiwiSaver to make payments compliant with tax legislation. All information provided will be held securely by Toka Tū Ake EQC and used only for the purpose for which it is being collected, and retained only for as long as necessary. You are entitled to access to, and to correction of, any information we hold about you.

8. How can I claim on behalf of a deceased person, or someone for whom I hold power of attorney?

We will need you to provide documentation to verify your identity and to confirm you are authorised to act on behalf of the estate or person. Please complete the webform and choose the appropriate option.

9. How did you calculate my remediation payment amount?

We have worked with KPMG and our payroll providers to identify the affected employees and establish the remediation payment amount owed.

10. What are the tax implications?

The remediation payment will be taxed as a lump sum payment as per Inland Revenue (IRD) guidelines.

You will need to provide a completed tax and KiwiSaver form when you submit your webform if this information has changed since your employment at Toka Tū Ake EQC.

We encourage you to contact Inland Revenue (IRD) or other relevant organisations for advice about whether your remediation payment affects any agreement you have with them about your current earnings, benefits, or any other matters.

The IRD website has useful information on lump sum payments:

https://www.ird.govt.nz/employing-staff/payday-filing/non-standard-filing-of-employment-information/lump-sum-payments/calculate-paye-for-a-lump-sum-payment(external link)

You can also contact the IRD directly on 0800 227 774 or by using your MyIR account.

11. Will KiwiSaver be deducted from remediation payments?

We will deduct KiwiSaver at the employee rate you contributed during your employment at Toka Tū Ake EQC. If you have changed your KiwiSaver contribution rate since you left Toka Tū Ake EQC, please let us know your current rate when you complete the webform.

If your KiwiSaver status has changed or you are on a KiwiSaver contribution holiday, savings suspension or any other exemption, then you will need to provide the copy of the letter from Inland Revenue confirming your current status via the webform.

KiwiSaver contributions will automatically be deducted at the time of payment and associated employer contributions will be matched appropriately.

12. Has child support been deducted from my remediation payment amount (if applicable)?

Child support has not been deducted from your remediation payment. You may need to advise Inland Revenue (IRD) that your family income has changed. You can do this at any time online through myIR at www.ird.govt.nz(external link) or you can call the IRD on 0800 227 773.

13. Will my remediation payment affect my Working for Families entitlements, or disability allowance?

You may need to advise Inland Revenue (IRD) that your income has changed, affecting Working for Families entitlements. You can do this at any time online through myIR at www.ird.govt.nz or you can call the IRD on 0800 227 773. You can also contact Work and Income New Zealand regarding disability allowances on 0800 559 009 or e-mail information@msd.govt.nz.

14. How long do I have to claim a remediation payment?

Individual remediation payment amounts will be held by Toka Tū Ake EQC for 5 years (until November 2027) before they are transferred to Inland Revenue (IRD) as unclaimed money. Any payment requests must therefore be submitted to Toka Tū Ake EQC by November 2027.   

15. Were people overpaid?

Some employees were overpaid and we have made the decision not to reclaim this money or to factor the overpayment into amounts owed in any way.

16. Has the issue been resolved so it won’t happen again?

We updated our systems in August 2020 to be compliant with the Holidays Act 2003 and remaining compliant will be a key ongoing priority for us.

17. Can I donate my remediation payment to a charity?

We’re unable to coordinate charitable donations on behalf of affected current and former employees. We will make the remediation payment directly to you and you can decide what to do with the payment. 

18. What happens if I don’t claim my remediation payment?

Any unclaimed remediation payments will be transferred to Inland Revenue (IRD) in November 2027. From that point, any further queries relating to remediation payments must be directed to IRD. 

19. What if I now have an overseas bank account?

If you have an overseas bank account, we will let you know what additional information is required to process your remediation payment.