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Employers must comply with current Holidays Act

The Holidays Act review does not mean employers can avoid meeting their current obligations, says Labour Inspectorate national manager Stu Lumsden.

“While we understand the enthusiasm for the review, this in no way excuses employers from taking all necessary steps to comply with the current Act, and paying any arrears which are outstanding to their employees.

“Employers should note the Holidays Act Working Group has 12 months to report back to the Minister with options, and any adopted recommendation will need to go through the legislative process – so it may be some time before any new Act is effective.

“Employers must continue to be proactive in testing their compliance with Holidays Act requirements, and to undertake rectification and remediation process where issues are identified.

“The Labour Inspectorate’s work assisting employers to achieve compliance with the Act and remediating historical underpayments will be continuing as one of our business as usual activities.

“We will also be targeting accurate and complete record keeping as a primary and critical element of compliance for all employers. 

“Proper record keeping is a longstanding and basic requirement for proper payment of workers. In the Holidays Act context, it is also the foundation for remediation of any calculation errors.

“Employers who have not maintained, and who are not continuing to maintain, necessary records are likely to face penalties.”

Find out more about the Labour Inspectorate’s Payroll Project.