NZPPA OPEN LETTER TO THE NEW MINISTER IN REGARD THE HOLIDAYS ACT 2003

Stop dreaming!!

  • The new government will not get rid of this act so stop dreaming!
  • Labour was the original government to introduce this *NIGHTMARE*
  • The government could change the act back so:
    • 1 week of annual holidays cannot be paid out, and
    • ADP is replaced with the old 4 week average that was used under RDP.

Let’s keep it real:

  • We need to approach the government in a positive way focusing on showing payroll does not want to reduce employee entitlements or payments for leave they take.
  • We need to show payroll wants to ensure employees are receiving correct entitlements and payments in any leave situation.

How do we do this?

  • We need to ask for some basic common-sense changes to the act that will make it workable and achievable for payroll.
  • We must push that these changes will make payroll more compliant.
  • The changes must be simple in nature, plain language and show the benefits to employees, employers and of course PAYROLL.
  • They must also be easily added to a payroll system so payroll suppliers don’t wear the cost of this change and can change their software to aid in payroll compliance and processing.

SEVEN THINGS TO MAKE THE HOLIDAYS ACT 2003 WORKABLE

The Seven (in summary):

  1. Change the Act to hours.
  2. Allow the parties to an employment agreement to define which payments are regular.
  3. Allow discretionary payments to be excluded from gross earnings if the term discretionary has been included in the employee’s employment agreement.
  4. Allow the parties to an agreement to define how a week for an employee that works variable hours is defined.
  5. If MBIE states an employer is non-compliant with the Act, in the first instance MBIE must provide clear guidance on what the issues are and how the employer can resolve them.
  6. 12-month window to amend existing individual employment agreements and for collective employment agreements on any changes agreed to be made in relation to 1 to 5.
  7. If the above changes (1 to 5) are implemented all current issues with underpayments should be set aside except for blatant breaches of the Act that are not in relation to the above.

Next steps:

  • Please provide constructive, practicable and logical feedback and what you think we should put forward to government.
  • Please send through to: [email protected] by 20 November 2017.
  • Draft to be completed by 24 November, submitted to the Minister by 30 November 2017.

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