More than 1000 Heinz-Wattie's staff in Hawke's Bay paid out over holiday pay mistake

All current Heinz-Wattie's impacted by the previous Holidays Act 2003 interpretation have received their remediation payments including about 1000 current workers in Hawke's Bay. Photo / NZME

Worked at Heinz Wattie's for any length of time in the past 10 years? You're in line for a payout.

A massive endeavour to address incorrect holiday leave pay is now in motion.

The company was one of many private and public sector employers, including the Ministry for Business Innovation and Enterprise, caught out in 2016 for an incorrect interpretation of certain provisions in the Holidays Act 2003.

The issue related to there being two ways to calculate holiday pay - either on the basis of ordinary weekly pay or an employee's average weekly earnings over the past 12 months.

But employers who calculate holiday pay based on an employee's contracted hours can get caught out if that person does variable hours or earns a commission or other variable pay.

Employers must pay whatever gives the employee the most money.

A spokesperson for Heinz Wattie's said it had recently finalised a review of its historic approach to payments under the Holidays Act, in line with what many other companies in New Zealand had done.

Anomalies in leave calculations were identified as part of this process, impacting a broad range of employees who worked across all New Zealand sites between June 30, 2011 and October 31, 2020, he said.

"We have been totally transparent with employees and have been working methodically at all sites with the support of the unions.

"All current employees who were impacted have received their remediation payments."

This included many of the longer-term employees in Hawke's Bay, with about 1000 receiving remediation payments.

Heinz-Wattie's is now beginning the process of contacting former employees.

"We have in place a system for ensuring that former employees for the period in question receive their payments. This will include advertising through multiple avenues."

The spokesperson said the total amount was confidential.

"We are following a process and meeting our good faith obligation as an employer to current and past employees.

"The process for ensuring that remediation payments are correctly calculated for past and present employees has been complex due to payroll systems which have changed over time."

To verify eligibility, past employees are asked to submit details online at watties.co.nz/holidaysact