NZPPA Initiative: Changing the Holidays Act 2003 so It is workable in payroll

One of the primary aims for NZPPA in 2015 will be to get the government to listen on getting the Holiday Act 2013 reviewed so it is workable for business (and of course payroll).

We will be starting this process by writing an open letter to the Minister and forwarding it to the relevant media organisations. We will then be asking for a follow up meeting.

NZPPA wants the act changed for the following reasons:

  • The Holidays Act 2003 is the most complex piece of legislation that impacts on payroll, to make it work with payroll it requires constant management to ensure calculations are correct depending on what the employee is working at the time. This does not fit with how payroll is processed and has had the effect of increasing compliance cost to employers and the time in payroll managing it, with an end result that could still mean that the employee has not been paid correctly.

NZPPA believes the act needs to change in the following ways:

  • To make the act work it must be made practical, logical and written in plain language to assist employers in meeting their obligations in providing leave for their staff. To achieve this it needs to be:

1. Changing the act to hours to fit all work environments.

2. Use one calculation instead of the seven calculations presently used (this includes alternatives, options and calculations built into some of the main calculations).

3. Add core record keeping requirements to be retained within payroll systems to assist employees going forward.
4. Expanded definitions written in plain language for all payments and deductions that effect gross earnings for Holidays Act calculations.

The above is very brief and this will be expanded in the letter that will be developed to be sent through to the Minister. NZPPA does not want to get into the politics of what employees should be paid for any leave taken, it is how they are paid that we are concerned with.

We need your help! What do you want to see in any changes to the act? We also want interested employers who are willing to co-sign the letter to the Minster to put their interest forward (at no risk to the employer). If you don’t get involved nothing will change!

Please send your response and or interest (to be involved) to David (NZPPA CEO): [email protected]

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