Holidays Act Remediation

Why are we reviewing our payroll systems and processes?

Over the last three years there has been considerable media attention on the payment of leave entitlements under the Holidays Act 2003 (the Act).  The Act is a very complex piece of legislation which can be interpreted in several different ways and has varying rules and calculations for different leave types.  This is a nationwide issue which involves many different organisations across multiple industries.

To ensure Komatsu New Zealand's interpretation of the Holidays Act was correct it decided to take a proactive approach and undertake an audit of its processes using an external company, Integrity1.  This audit began in April 2019 and involved looking at a small sample of both current and past employees and going back 6 years to 1 April 2012.

The audit identified some differences in interpretation with the calculation of payments relating to annual holidays, bereavement leave, alternate leave, public holidays and sick leave and primarily impacts permanent employees who work variable hours or receive commissions. In some cases, but not all,  employees may not have received correct payments and remediation may need to occur.

We now want to contact all former employees of Komatsu NZ who worked with the company since 1 April 2012.  This will be a 2-stage process;

  1. Complete the on-line Holidays Act remediation enquiry webform;


  1. We will then contact you to discuss your individual remediation and next steps, if any.


Holidays Act payment webform

If you're a former Komatsu employee and want to know whether you're entitled to a remediation payment, please complete the webform with your details and submit.

Your information will be sent directly to our Payments Team. They'll contact you using the details provided, to confirm whether a payment is owed to you.

Privacy Disclaimer:
By providing your personal information via this webform, you consent to Komatsu using that information in relation to monies owed to individuals under the Holidays Act 2003. We will not use or disclose personal information collected in this process for any other purpose, and any personal information provided to us will be treated in accordance with the Privacy Act.


  • How do I know your calculations are correct?

    We’ve used the expertise of Integrity1, Bell Gully and Employers and Manufacturers Association to review all affected employees’ leave records, payments, and earnings data back to 1 April 2012 and recalculated the back payments. This has been a very thorough process to make sure you’re getting what you’re entitled to.

  • What are the main reasons as to why the Holidays Act was interpreted differently?

    Complexities generally arise in two areas of the Holidays Act:

    1. Payment calculation rules for annual holidays.
    2. The method of calculation for bereavement leave, alternative holidays, public holidays and sick leave.

    Differences can arise with the method used to calculate the payment owing to an employee, as there are different ways of calculating what should be paid for a specific day/week of leave or holidays.

    Ordinary weekly pay, average weekly earnings, relevant daily pay and average daily pay are the calculations that are used depending on the type of leave that is taken. If the incorrect method of calculation is used it can result in an overpayment or an underpayment to an employee.

    Calculations are made difficult as the Act refers to annual holidays being paid in weeks, whilst other leave types (bereavement leave, alternative holidays, public holidays and sick leave) are paid in days.
    Employers will often accrue, calculate and pay holidays and leave taken in hours to allow smaller quantities of time off to be taken by an employee (i.e. half day = 4 hours).

    Calculation differences can also happen when employees receive commissions, additional allowances, bonuses, work regular overtime or their hours vary day-to-day or week-to-week.

  • Are all employees affected the same, or will there be differences from employee to employee?

    There are several factors that determine who will be affected by the Holidays Act remediation. Some examples of these are:

    • the employees’ work pattern (days and hours worked);
    • whether overtime is worked;
    • whether commissions or a bonus has been paid;
    • when annual leave has been taken;
    • length and period of service with Komatsu;

  • How do I know if I’m due a remediation payment?

    Due to the fluctuation of earnings history and leave patterns for our business, every case has been assessed individually; therefore, any payment will be different.

    Komatsu will be writing to each current and former employee to advise of the money they are owed, if any. If you believe you are eligible and have not been contacted by 30 September 2020, please call 09 969 6721.

  • What if I have been paid more than I should have?

    Komatsu acknowledges that all leave entitlement payments were made in good faith. We accept responsibility for all leave calculations and will not be seeking to recover  any overpayments from employees.

  • Will I receive a detailed breakdown of my remediation file?

    The recalculation files are incredibly complex and detailed, involving large quantities of data, therefore, the full breakdown will not be provided with the letter detailing the amount of your payment. Should you require this full breakdown of your calculations, we can provide this upon your request.

  • For the purposes of remediation calculations, how is a ‘week’ defined?

    The remediation calculations have been performed with a week being in line with the pay period, which is Monday to Sunday.

  • For the purposes of remediation calculations, how is a ‘day’ defined?

    A day is defined as your work pattern hours for the particular instance of leave. For example, if you had a day of sick leave on Thursday and your work pattern for a Thursday is six hours, then that's what constitutes a day for the calculation of the Relevant Daily Pay or Average Daily Pay for that instance of sick leave.

  • Why is the assessment only being backdated to 2012 when the Holidays Act has been in place since 2003?

    Under s131 of the Employment Relations Act, any remediation is subject to a six-year limitation period from the date on which Komatsu first became aware of the issue, which was April 2019.

  • I've received a very small payment (for example, less than $1). Why did you bother to pay me?

    We know these may seem like small amounts. However, we are legally obliged to ensure you receive any payment owing to you.

  • What dates does the remediation cover?

    The Employment Relations Act requires Komatsu to go back six years from the date the problem was first identified. Komatsu first identified the potential problem in April 2019, so remediation will be calculated from 1 April 2012 up to 28 June 2020.

  • What if I started working at Komatsu after 1 April 2012?

    If you joined Komatsu after 1 April 2012, then your remediation period begins on the date you commenced employment with us.

  • When and how will I be paid?

    If you are eligible for a payment, we’ll contact you via email or letter using the details we currently hold.

    This letter will request specific documentation to be returned to us and a payment will be made to your nominated bank account after we have verified your details.

    If you haven’t heard from us and believe you may have been affected, then please complete our online webform and we'll be in touch.

    Holidays Act remediation enquiry webform

  • How much will I be paid?

    Earnings history and leave patterns are unique, so each employee's payments have been recalculated individually for the remediation period of 1 April 2012 to your last day of duty. As a result, each payment amount will be different.

  • Will payments include interest?


  • I have left Komatsu and returned, how does this process impact my potential remediation payment?

    In this situation there are two possible scenarios:

    1. You have left Komatsu and been employed back on the same employee number
    2. You have left Komatsu and been employed back on a new employee number

    In both scenarios, this has been taken into consideration and the recalculations have been based on each situation. If you are entitled, you will still only receive one payment amount, which will be a consolidation of the calculations

  • How will my remediation payment affect my income tax or benefits?

    The remediation payments have been treated as an ‘extra pay’ for tax purposes. We encourage you to contact other relevant organisations, such as Inland Revenue, for advice about whether this payment affects any agreements you have with them about your current earnings, benefits, child support or any other matters.

    Past employees will need to complete a Tax Code Declaration form (IR330) to ensure Komatsu has up-to-date details to enable the tax to be calculated accordingly. You can check the IRD website at to see if your total earnings, including your holiday back payments for this financial year, take you into a different tax bracket. You may also want to seek independent tax advice

    The Inland Revenue website contains useful information on the tax treatment of lump sum payments such as an arrears payment. You can also contact Inland Revenue directly on 0800 227 774.

  • How will KiwiSaver and superannuation contributions be managed?

    KiwiSaver deductions and contributions will be calculated as part of the remediation payment.

  • How will student loan repayments be managed?

    Student loan repayments will be calculated as part of the remediation payment.

  • What happens if the person you're trying to contact is now deceased?

    Where a former employee is deceased, and would have been eligible for a payment, contact will be made through their known Executor of Estate. Once we’ve made contact, we’ll request the verification documents to be returned to us before a payment is made.

    If you're aware of this information and you wish to advise us of the details, please contact us and we'll work through the appropriate process.

  • What if I’d like to donate my payment?

    If you wish to donate your payment, you'll still need to follow the same process to claim your payment. Please note that payment can only be made to the person that payment relates to.

  • What happens if I decide not to claim my payment owed?

    In line with section 6, 7 and 8 of the Unclaimed Monies Act 1971, where monies have not been claimed they will be passed onto the Inland Revenue Department (IRD).  This will happen after 6 years from July 2020, ie 2026.

  • Can I request that my payment is made into an overseas bank account?

    We can only make payment into a New Zealand bank account; this nominated account does not have to be an account held in your name.

  • What should I do if I receive a letter or email from Komatsu but I'm unsure whether it’s legitimate?

    We're in the process of sending correspondence out to eligible former employees, and we understand that some people might want to verify the source as trustworthy before they respond.

    If you receive an email from us and are unsure then call us on 09 969 6721.

  • Still have questions?

    If you have a query that hasn't been addressed through the information on these pages and the commonly asked questions above, you can contact us on 09 969 6721.