Final pay when ending a job

The Ministry is working to resolve a historic issue that has led to some former school employees not receiving final pay due when they finished their job.

Summary

The payment errors date from the introduction of Novopay in 2012 through to the end of the 2020 school year and affect a number of former school employees.

Starting in mid-August, the Ministry will make remediation payments to affected former employees for final pay owed, but not paid, when they left their job.

We will be contacting former school employees affected by the payment errors to let them know what we are doing to remediate them.

We acknowledge it has taken a long time to resolve these payment errors and remediate affected school employees. We are committed to putting things right to ensure that the errors do not continue.

Go to the Schools Payroll Remediation Portal to register. When prompted, enter the unique Reference Number that was emailed to you. You will be asked to provide information needed to process your payment including proof of identity, your current tax code, KiwiSaver contribution rate and a bank account for payment.

Schools Payroll Remediation Portal(external link)

Frequently asked questions

What has happened and who is affected?

EPL and Ministry of Education has been working through outstanding issues relating to Novopay, such as jobs in the schools’ payroll not being correctly ended. Through this process we discovered some former school employees did not receive their final pay due to them when they finished their job and left the education sector.

The payment errors date from the introduction of Novopay in 2012 through to the end of the 2020 school year. Processes have been put in place to avoid this issue reoccurring. Now, when permanent employees stop working, schools are required to ensure their jobs are ended in the payroll system. If the school does not do this, EPL will contact the school to remind them of their obligation.

When fixed-term employees finish a job, if the school does not end their jobs, EPL will do so.

Some current employees were affected, these employees were remediated in late 2021.

How will former employees know if they are owed final pay?

The Ministry of Education will contact affected former employees by email, text and letter to let them know they are owed final pay and to request their up-to-date payment details before making remediation payments into their nominated bank account. If you do not hear from us, you are not owed remediation.

When will former employees be remediated?

The Ministry will start making remediation payments starting from mid-August 2022 to affected former school employees.

The Ministry of Education will make best efforts to contact affected former employees to ensure we have their up-to-date payment details before making remediation payments into their nominated bank account.

Where will this payment be funded from?

The Ministry of Education has agreed to absorb the cost of this remediation on behalf of schools. Payments will appear and then be reversed on school SUE reports – this will show that no cost is incurred by your school and is for auditing purposes. 

What do school leaders and authorised users need to do?

There is nothing you need to do. The Ministry of Education is working to make remediation payments to affected former employees starting in mid-August 2022. We will write directly to affected former employees.

What if an affected former employee has more than one job in the sector?

A number of former employees have had more than one job (e.g. multiple contracts with one or more schools).  Employees will receive remediation for any job that has ended for which they have not been paid their final pay. We will contact these former employees directly.

Is this remediation related to non-compliance with the Holidays Act?

This remediation is separate from the project to address the schooling sector’s non-compliance with the Holidays Act.

What if I no longer have a New Zealand bank account?

If you no longer have a New Zealand bank account, please register on the remediation portal or log in if you are already registered. You will then be able to log a query and one of our team will respond to you to explore options available to you. They will also explain the process for making a payment to a foreign bank account and potential for bank fees.

How will we contact you?

If you are owed a remediation payment, you will receive an email, letter or text.

If you do not register as advised in the communications we will send you, a reminder email from the same address, text message or letter will be sent to you.

If you have any concerns about scams, please register/log into the portal and raise a query with us. 

Schools Payroll Remediation Portal(external link)

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