It has been interesting to see in the media that when MBIE’s is quoted they are always blaming employers, payroll suppliers and payroll practitioners for the issues that have happened with the Holidays Act 2003 BUT what about MBIE admitting that the problems with the Holidays Act are actually from 11+ years of inaction on their part starting from the old DOL and now the present MBIE.

I just wanted to highlight what NZPPA has tried to do to get support from MBIE since it was formed a number of years ago:

• Asking for their support in updating the DOL approved payroll specification for the Holidays Act so it would be in line with MBIE’s current interpretation and to also add additional examples and testing scenarios for developers to test their system to ensure compliance with the act. MBIE stated they would not support this and the specification was withdrawn.

• MBIE stated they would instead look at having workshops for payroll suppliers but this NEVER HAPPENDED!!

• NZPPA helped MBIE identify payroll suppliers as MBIE stated they would go out and meet with them 1 to 1. MBIE did this but NZPPA and payroll providers thought it would be so MBIE would tell them how to resolve the issues with the act instead it was embarrassing as MBIE just sat there (a policy person from MBIE) asking questions on the act showing they had no understanding of the act or payroll!

• NZPPA was then told by MBIE we would not be involved in any further discussion as we were not a payroll supplier.

• NZPPA has asked specific questions on the Holidays Act to MBIE many times and have been told that they do not provide interpretations of acts.

• NZPPA has received numerous complaints from its members on the MBIE AdviceLine providing different answers to the same question when contacted. NZPPA is also testing their AdviceLine on a regular basis and can confirm this is what is happening and did raise this at the meeting with MBIE.

• After getting a range of reports from our members on the actions of MBIE Labour Inspectors in regard to their interpretation that they would not share (stating that the employer was doing the calculations wrong but would not provide information on how it should be done to get it correct) NZPPA made an Official Information request to MBIE in early 2015. This was for any training material used to train their AdviceLine and Labour Inspectors and their current interpretation of the Holidays Act. We planned to provide this information to all payroll providers and payroll practitioners so we were all on the same page and knew what we had to do to be compliant. When we received the material we found large parts of the document had been redacted with MBIE stating legal privilege. NZPPA made a formal complaint to the Ombudsman on the missing information not provided by MBIE. Our complaint has been accepted and the Ombudsman believed it needed to be followed up but they have a lack of resources and our compliant is still sitting with them to be actioned.

• With MBIE’s present focus of enforcement with auditing employers without providing support NZPPA has made another Official Information Act request to MBIE for all training material, guides and policy that the Labour Inspectors involved in these audits are using so we know what is the process and framework they work within. If we get this information we would share it with everyone so they know what the rules that these Labour Inspectors should be working within while undertaking a payroll holiday.

So as you can see NZPPA has tried to get help for payroll for many years and MBIE has known about the problems. If MBIE had acted years ago NZPPA believes the problems we have today could have been greatly reduced if not fully resolved.

MBIE stop blaming payroll suppliers and payroll people take some responsibility for the situation you have now created!!