Hardware retailer Bunnings says it will pay more than $11 million to current and past staff members for miscalculating holiday pay.
The Australian-owned firm said it has gone back and reviewed the way it implemented the Holidays Act and payments to 12,235 workers going back to 2004.
It said it has recalculated what it should have paid affected staff and is also adjusting that for inflation. The median payment is $317.
"Like many other private and government organisations, we have found interpreting and applying the Holiday Act to be a challenge," Bunnings New Zealand general manager Toby Lawrance said.
He said current staff members were being told today and payments were already being made.
The company is trying to track down former staff members at their last known address, but anyone who thinks they might have been affected can lodge a claim on its web site.
The issue resurfaced in 2016 with government departments and private businesses judged to have been misinterpreting how holiday pay should be calculated.
"Clearly this is disappointing for us and for our team and we will continue to work to ensure that we have the right systems and processes to support our team," Mr Lawrance said.