The founder of one of New Zealand’s primary pay roll systems has said that many of New Zealand payroll systems are non compliant with the Holidays Act. Thousands of New Zealanders, and possibly more are being underpaid what they are really worth as a result. And worse still, neither the private sector or the Government seem to know the full extent of the problem.
Shocking! How many teachers, doctors, nurses, police officers, military personnel are being paid properly? How many people in the private sector are getting paid properly? Errmmm….. ummmmm…. we don’t know.
The Government blames the complexity of the Holidays Act 2003. How interesting that in 2010 the same Government of Prime Minister John Key overhauled the Act. The supposed complexity of the Act was not addressed then, which begs the question: “Why?”. Mr Joyce also says that the amount that people have been left out of pocket by is minor stuff.
Actually the biggest amount owed to an individual could fund a couple days in Australia – $2,000. And the smaller stuff – amounts around $80 – for a person on minimum wage might be the difference between whether or not they can do their grocery shopping that week.
This is not good enough. Think about it. If thousands of New Zealanders are being underpaid, then I wonder how many are paying their due tax, since in paying tax they would have needed to know how much they were earning, and if they were told the wrong amount, they would – presumably made the honest mistake and told I.R.D. the wrong amount.
I think it is time for heads to start rolling. New Zealanders have known for years that payroll systems are not totally compliant and we have had one major scandal already with Novapay. Now it looks like they could be the victims of another muck up. The 2012 scandal lead to thousands of teachers being over/underpaid or simply not paid at all. And earlier this year the Police admitted that they had to cough up N.Z.$33 million to pay 15,000 staff because their pay roll system did not calculate pay properly.