Holidays Act Compliance - schools payroll

The Holidays Act 2003 was set up to promote work/life balance amongst employees. It sets out how employers should pay staff for annual holidays, public holidays, sick leave and bereavement leave. We’re now reviewing the way the Holidays Act has been applied to the schools payroll.

Compliance Review

The Ministry, Education Payroll Ltd (EPL) and independent advisers Deloitte have carried out an initial high level review (School Sector Payroll Holidays Act Compliance Review) of the schools payroll to examine whether it complies with the Holidays Act 2003.

That review [PDF, 2.2 MB] has found that in some areas it does not comply. The general areas of non-compliance relate to the way pay for different types of leave has been recorded, calculated and applied.

This issue is not unique to the schools payroll. Many private and public sector organisations across New Zealand have been, or are currently dealing with this issue.

Next steps

We are committed to putting this right. Work is now underway to confirm and address those areas of non-compliance, and calculate and deliver remediation to affected staff.

Due to the size, scale and complexity of the schools payroll, this will take some time. The schools payroll disburses $4.6 billion per annum to around 93,000 staff fortnightly at 2500 schools.

Keeping informed

We are working with the school sector, particularly unions, associations and school staff representatives during this process. We will keep them well informed with any developments.

More information

Please email Holidays.Act@education.govt.nz.

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