8 Dec 2017

MBIE admits to $10 million payroll problem

From Morning Report, 8:21 am on 8 December 2017

The Government has set aside $10 million to fix a payroll mess affecting 9,000 current and former staff at the Ministry of Business, Innovation and Employment. Mistakes with holiday pay at MBIE came to light almost two years ago but so far no corrective payments have been made. The Ministry says it's a complex problem and is taking time to sort - it expects to resolve the problem some time next year. MBIE is the ministry responsible for ensuring all employers pay staff properly according to the Holidays Act. Meanwhile, its briefing to the incoming minister says it wants a whole new payroll system that ensures it is fully compliant with the law. David Jenkins heads the 1,100-member Payroll Practitioners Association. He tells us it's strange that MBIE has time to see others comply with the law, while neglecting to pay its own staff.