Holidays Act Remediation

The issues relate to how employee leave entitlements have been calculated under the Holidays Act 2003. The Act is complex legislation which requires specific calculations for different types of leave. For employees working rostered shifts that require frequent changes of hours and days of work, or for those who regularly work overtime, the calculations are particularly complex.

Through this process, we have identified our compliance issues and any required actions to remedy them have been taken to ensure Serco is now compliant with the Holidays Act. The issues identified relate primarily to the entitlement and payment of:

• Annual holidays
• Bereavement leave, Family Violence Leave, Sick leave
• Alternative holidays
• Public holidays
• Final pay/Termination pays

The Serco remediation period is for those employed by the company from April 2015 up to when Serco confirmed compliance with the Act. Please note that not all staff who worked for Serco during this period are affected as they have been paid correctly.

An action for payment of arrears under the Employment Relations Act 2000 is subject to a six-year limitation period from the date on which Serco first became aware of the issue, which was April 2015.

Yes. People who worked at MECF during the applicable period (from 2015) may be affected and can check their eligibility via the portal on the Serco website.

Affected people who worked for Serco during the applicable period will receive a letter from us with information about their payment and how to claim it. Serco is using the last contact details we had for people when they left our employment. If you think you are eligible and you don’t believe we have your correct contact details, please update your details in the portal to ensure correspondence can reach you.

To check if a deceased person’s estate or someone you act for is due a remediation payment, you’ll need to verify your identity and provide documentation confirming you are authorized to act on their behalf. You can submit this documentation via our portal.

There are two reasons why you may not have received a letter:

1. You may be one of the people who are not affected by these issues. If you would like to check, register via the portal and this will confirm if you are affected.
2. The address we have for you may not be your current address. We encourage former staff to go to the portal on the website and register to update their details.

Your earnings history and leave patterns are unique to you and therefore, each payment must be recalculated individually for the time you worked for Serco during the remediation period. If you are due a payment, the breakdown of the payment and calculation will be provided to you at the time the payment is made.

To enable us to make payment, we will need the following documentation from you:

• Bank account details for payment: a bank slip or a bank statement.
• Tax Code and IRD number: a signed IR330.
• Proof of Identity: birth certificate, passport, certificate of citizenship, Immigration NZ Visa, driver’s licence, or HANZ 18+ card (and any supporting change of name if different from when you were employed by us).
• A signed Kiwisaver declaration form (KS2).
• Evidence of your Authority to Act on behalf of someone else (if relevant): Signed letter of Authority to Act, Signed Estate Document.

These remediation payments are being treated as “extra pay”, which means your Tax code and Kiwisaver percentage (if you are an active member) need to be applied. We encourage you to contact the relevant organization, such as Inland Revenue, for advice about whether your remediation payment affects any agreements you have with them regarding your current earnings, benefits, child support, or other matters.

The Inland Revenue website has useful information on the tax treatment of lump-sum payments such as arrears payments.

No, we can only make payments to New Zealand bank accounts.

In line with sections 6, 7, and 8 of the Unclaimed Monies Act 1971, where monies have not been claimed, they will be passed onto the Inland Revenue Department.

We know these may seem like small amounts; however, we are both legally and morally obligated to ensure you receive any payment owing.

No. Despite the project identifying that some individuals received an overpayment, we will not be recovering any money that may have been overpaid.

CANZ has been fully briefed on the remediation calculation process and has met with the external provider who has assisted Serco with the project. We will continue to engage with CANZ regarding any issues relating to individual members.

Please send your query to holidaypay@serco-ap.com.