Commonly asked questions

GENERAL

What are the payroll issues?

The issues relate to entitlements under the Holidays Act 2003. The specific areas that require recalculation date back to 2 December 2013 and are related to the payment of statutory holidays, and the rate of payment for annual, alternative, sick, special and bereavement leave. This means that some of our current and former staff are owed recalculated payments.

The Holidays Act legislation is complex with varying rules and calculations for different leave types. This issue is not isolated to Rotorua Lakes Council, Rotorua Economic Development or InfraCore. It is an issue affecting many employers across New Zealand.

Who is affected?

The issue relates to a number of former and current staff members, employed between 2 December 2013 and 3 May 2021.

Not all staff members who worked during this period are affected, however all current and former staff members employed during the review period will be communicated with.

This also applies to staff who were employed under the trading names Rotorua District Council, Destination Rotorua, i-Site, Rotorua Contracting or Castlecorp.

I'm a former staff member and I have changed address. How will you contact me?

Former staff members were contacted from early June 2021 using the last known email and/or postal address we have on file.

If your contact details have changed and you do not receive an email or letter, we encourage you to still check if you are due a payment (see 'How much will my payment be?' below).

I moved between Council and/or CCOs during the review period (2 December 2013 to 3 May 2021). How do my holiday pay records get calculated?

If you have moved between a Rotorua Lakes Council CCO entity during the period of review, your entire individual recalculation will be captured by your most recent employer.

How much will my payment be?

As everyone's earnings history and leave patterns are unique, recalculation payments will differ for each staff member. If you are due a payment, a detailed letter will be sent to you once you have completed all the required information on the website.

If you were employed by Rotorua Lakes Council or Rotorua District Council, please email holidayrecalc@rotorualc.nz to check if you are eligible for a recalculation payment.

If you were employed by Rotorua Economic Development, Destination Rotorua or i-Site, please email holidayrecalc@rotoruaNZ.com to check if you are eligible for a recalculation payment.

If you were employed by InfraCore, Rotorua Contracting or Castlecorp, please email holidayrecalc@infracore.co.nz to check if you are eligible for a recalculation payment.

My detailed letter says I am owed a very small amount. Are you still going to pay this?

Yes. We are required by law to ensure you receive any payment owing to you, no matter how small the sum.

When will I receive the amount owed?

Former employees will be paid promptly once the individual's details are verified. These payments are usually processed within 30 working days.

Why has it taken so long to make these payments?

From the time Rotorua Lakes Council, Rotorua Economic Development and InfraCore became aware of the payroll issues, each organisation has worked to investigate the inconsistencies thoroughly and ensure calculations are accurate for each former and current staff member.

A comprehensive recalculation and validation process has been undertaken by independent, external payroll specialists Integrity1, to ensure all issues are addressed and all employee entitlements are correctly recalculated.

How many current and former staff are affected?

Not all current and former employees are affected by this recalculation; however, all will be communicated with. Approximately 1,900 current and former RLC, RED and InfraCore staff members' historical data has been recalculated. Approximately 40% of these people are not due any payment.

How much will be paid in total?

The total cost of the recalculation payments is approximately $1 million. This has been calculated across the 7.5-year review period and captures around 1,900 current and former RLC, RED and InfraCore staff members' historical data. Approximately 40% of these people are not due any payment.

How have these payments been budgeted for?

Council is funded by a range of revenue sources (ratepayers, external funding, fees and charges) and has made provisions to cover the payments involved with this recalculation project.

Has this impacted rates for the 2021/22 year?

No - Council allowed for provisions in the 2021/22 year to accommodate the recalculation payments.

What steps have been taken to ensure these issues do not occur again?

Future compliance with the Holidays Act has been a major focus of the work RLC, RED and InfraCore has completed. All entities have worked closely with external experts Integrity1 to ensure the systems and processes are as robust as possible to comply with the Holidays Act.

RLC, RED and InfraCore will continuously review our payroll processes and systems to ensure all holiday pay is correctly paid moving forward.

Many other organisations have also been dealing with this issue due to the technicalities of the Holidays Act. Making it easier to calculate entitlements and pay is one of the intended outcomes of the Holidays Act overhaul which the Government announced in February this year following a two-year review by a taskforce set up in 2018.

I work at the Aquatic Centre and my employment was transferred to CLM. Am I considered a former or current employee?

If you are a current member of the Aquatic Centre team, or if you used to work at the Aquatic Centre between 2 December 2013 and 3 May 2021, you are considered a former employee of Rotorua Lakes Council. You will receive an email or letter with information about the Holidays Act recalculation to the last known email or postal address on file.

I work for Trility and my employment was transferred from RLC. Am I considered a former or current employee?

If you were transferred from RLC to Trility, you are considered a former employee of Rotorua Lakes Council. You will receive an email or letter with information about the Holidays Act recalculation to the last known email or postal address on file.

I work or have worked at the airport, why haven't I been contacted?

Rotorua Airport runs its own payroll. The airport is currently undertaking an independent payroll review. If a recalculation process is required, airport staff will be advised once the review is complete.

DOCUMENTATION AND PAYMENT

What documents do you require to process payment?

To ensure you receive any money owed to you, we must obtain proof of identify, and bank account details, as well as information relating to superannuation and taxation details.

You will be advised what these documents are once our team has determined whether or not your are owed a repayment.

Will I receive a payslip once my recalculation has been paid?

A payslip detailing the payment will be sent to you following payment.

Will I receive a detailed breakdown of how my payment has been calculated?

The recalculation of payments is complex, involving a large amount of data, and detailed calculation breakdowns will not be provided with the letter relating to the amount of your payment. However, if you wish to obtain a detailed statement of your calculation, this can be arranged on request.

Please email a member of the Holiday Recalculation Team if you require a detailed breakdown:

Rotorua Lakes Council: holidayrecalc@rotorualc.nz

Rotorua Economic Development: holidayrecalc@rotoruaNZ.com

InfraCore: holidayrecalc@infracore.co.nz

Will interest be paid on top of my recalculation payment?

Interest will not be paid on top of any recalculation payments. A number of factors have been considered in deciding whether it was appropriate to pay an additional amount in the form of interest or compensation. These factors included the following:

Given the amount of money owed to staff, it would not be fiscally responsible for Council, RED or InfraCore to pay interest or compensation.
We are not legally obliged to pay interest or compensation in this situation.
Where possible, assumptions have been made in favour of employees or the most generous method of calculation has been used.

TAX, KIWISAVER AND OTHER BENEFIT IMPLICATIONS

How will my payment affect my tax and any deductions or contributions?

Recalculation payments are classed as earnings and therefore subject to the following deductions/contributions:

PAYE (tax). This will be at the 'Extra Tax' rate. (Visit the IRD website for more information on Extra Tax. You can also contact Inland Revenue directly on 0800 227 774)
Student loan deductions
If you are a KiwiSaver member your current contribution rate will apply.

We encourage you to discuss with the relevant organisations how your payment may impact child support, benefits etc. If you have any concerns about this, please email a member of the Holiday Recalculation Team:

Rotorua Lakes Council: holidayrecalc@rotorualc.nz

Rotorua Economic Development: holidayrecalc@rotoruaNZ.com

InfraCore: holidayrecalc@infracore.co.nz

The Inland Revenue website has useful information on the tax treatment of lump sum payments such as this recalculation payment.