FNZ New Zealand Holidays Act 2003 Review

If you are an existing FNZ employee, no action is required.  You will be notified if a repayment is owed to you.  If you are a former FNZ employee, employed by FNZ between 1 June 2013 and 1 August 2021, and believe you may be owed a repayment, please complete the contact form above.

The Holidays Act 2003 is complex legislation with varying calculations and entitlements for different leave types. As a result, many New Zealand employers have found it challenging to apply the legislation correctly when calculating entitlements and payment for holiday pay and other forms of leave. FNZ has been through a thorough review process of its historical and future payroll processes to ensure full compliance with the Holidays Act 2003. As a result of our review, we have identified underpayments and under-entitlements for some current and former FNZ employees, primarily those who received incentive/bonus payments and/or on-call or other related allowances. FNZ is committed to rectifying these and will communicate with affected current and former employees if they are eligible for a repayment. This review will not impact all current and former employees. Some current and former employees had their leave and entitlements correctly calculated during their time at FNZ.

This issue affects some individuals employed by FNZ between 1 June 2013 and 31 July 2021. It primarily affects former employees who received incentive/bonus payments and/or on-call or other related allowances.

The review covers the period between 1 June 2013 and 31 July 2021.

If you are an existing employee, we will notify you of a repayment entitlement. If you are a former employee and you are entitled to a repayment, we will attempt to contact you during January 2023.If you don’t hear from us but believe you are entitled to a repayment,
please fill in our contact form above.

The following documentation needs to be provided before your repayment can be made to you:

• A personal record update form, including:

• Proof of identity (e.g. copy of driver's license, passport, or birth certificate); and

• Bank account details (e.g. deposit slip or statement with account name); and

• A signed Tax Code Declaration Form (IR330); and

• If you are contributing to KiwiSaver, a signed IRD KiwiSaver Deduction Form (KS2), or if you are not contributing to a KiwiSaver, a signed IRD KiwiSaver Opt-Out Form (KS10)

Not all current and former employees will be impacted by this review. If you are a current employee, we will advise you if you are entitled to a repayment. If you are a former employee entitled to a repayment, we will contact you during January 2023. If you don’t hear from us, but believe you are entitled to a repayment, please complete the contact form above.

The amount of your repayment will vary based on the incentives/bonuses you may have received, and/or any on-call or related allowances while working at FNZ. Each payment will be individually calculated.  FNZ has engaged with an external expert to assist in the recalculations and has been through a thorough exercise to review these calculations before contacting individuals to confirm repayment entitlements.

Your repayment will be taxed as a lump sum payment. You can check the IRD website at www.ird.govt.nz/ to see if your total earnings, including your holiday repayments, take you into a different tax bracket. You may also want to seek independent tax advice. Further information about lump sum payments can be found in this IRD factsheet: IR1046 Getting lump sum payments.

PAYE, as well as other deductions, such as student loan repayment and KiwiSaver contributions, will automatically be deducted at the time of payment. These deductions will be based on the information provided to us on the form you are required to complete.

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

Child support has not been deducted from your repayment. You may need to advise the IRD that your family income has changed. 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.The Inland Revenue website has a useful factsheet regarding lump sum payments such as an arrears payment: IR1046 Getting lump sum payments.

Your repayment may affect your Working for Families entitlement or disability allowance for the year ending 31 March 2021.Please refer to www.ird.govt.nz/ or call the IRD on 0800 227 773 if you need further information.

FNZ engaged with a specialist partner, Mero Limited, a data and analytics
consulting company, to assist with the detailed remediation computations. 
Mero have extensive experience providing support to many large, New Zealand based organisations undertaking similar leave remediation reviews to address underpayments in accordance with the NZ Holidays Act. Through the use of a Holidays Act Remediation Engine, Mero has assisted in recalculating leave and payment entitlements, in accordance with the complex Holidays Act legislation. The recalculation took into account all periods of leave and individual earnings, including allowances and other payments entitled to be included when calculating Holiday Pay entitlements. The results were then thoroughly tested by our FNZ NZ Payroll Manager, resulting in a clear view of repayment entitlements for those impacted.

If you believe a deceased former employee or former employee for whom you hold Power of Attorney for is eligible for a repayment, please complete the contact form above and email HolidaysActInfo@fnz.com.

If you wish to donate your payment, you would still need to follow the same process to claim your payment. Please note that the payment can only be made to the person that the payment relates to.

Please email HolidaysActInfo@fnz.com