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The nightmare continues with MBIE sending a pre audit letter to a 100 employers requesting a range of information on how they calculate leave provided under the Holidays Act 2003. This information must be supplied by a deadline date or MBIE will consider the employer wants to be given priority for audit.

These audits will be carried out by a special hit squad of 5 MBIE Labour Inspectors formed recently focusing on auditing payroll systems in regard to the Holidays Act 2003.

Please clearly understand they are not there to help, provide direction or assistance. If they believe your calculations are wrong you have to get it right and back pay any shortfall to employees. If you don’t you will be threatened with potential prosecution. They will not tell you what you must do to resolve any issues just what the issue is, it is then up to the employer to figure it out and MBIE to say if that is correct (how many times it takes until you get it right is up to MBIE’s interpretation that they will not share).

My comments are from our members that have gone through this previously and we have had comments they felt bullied, threatened and intimidated by how certain labour inspectors interacted with them even when the employer had sought help initially. It was even stated to NZPPA they are a law unto their-self and show a range of inconsistencies in their communication causing additional confusion on an already stressful time for payroll who just want to get it right so employees are paid correctly for any leave on time.

Our advice is to provide exactly what is required in the timeframe required do not provide anything more. Record all meetings with any MBIE representatives and make extensive notes on any requests made. Everything is on the record and don’t be put on the spot with questions, check first and then provide full complete responses once you have fully confirmed it. You may want your legal representative involved in this process or at the very least vetting what comes from and goes to MBIE.

I have provided this post for all the good employers and payroll professionals out there that want to pay their employees correctly but have now been put in a position that they are being treated as some sort of criminal for the 11+ years of failures coming from the Holidays Act 2003.

I fully understand and accept that my comments will mean I will not be on the MBIE Christmas card list or ever invited to their office Christmas party, so I guess that is one good thing to come out of this situation.

Please contact me on any experiences you have with MBIE (it will be treated in confidence) or if you have any questions on how to be compliant with the Holidays Act 2003.

NZPPA supporting NZ payroll!