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The payroll problems in a nutshell

NZ NewswireNZ Newswire 31/03/2016


* Problems relate to the calculation of holiday pay - some public and private sector employers haven't been meeting their obligations under the Holidays Act

* Not all workers likely to be affected - only those who work varying hours or earn allowances on top of their regular pay

* Police and the Ministry of Business, Innovation and Employment are the two government agencies confirmed to have problems

* Police have paid back the vast bulk of the $40m owed to staff

* There are concerns about the school payroll system, which are being looked into

* There are also worries about DHBs and other ministries using the same payroll provider as MBIE

* Since 2012, the labour inspectorate has launched 42 investigations into payroll-related breaches of the Holidays Act

* 20 investigations have been completed and in 19 of them some form of action was required

* There were eight cases where employees had been underpaid - in total 24,000 workers

* Amount owed to each individual varied between $70 and $1800

* The labour inspectorate is promising more targeted investigations.

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