FENZ will be directly contacting members shortly about remediation payments due to failures to properly calculate various types of leave and pay adjustments.

FENZ is intending to send every affected employee a “remediation pay statement” with amounts FENZ owes or what they claim the member has been overpaid.  This will just be totals without a breakdown or any demonstration of how they have calculated the amounts recorded in the statement.  Members will have to ask for those calculations individually and are advised to do so.

FENZ is notorious for its failed payroll systems and errors in wages.  With the magnitude of those affected by this remediation, it is realistic that there will be errors or miscalculations.  This is in no way a criticism of the staff working in payroll – it is a criticism of the FENZ ELT, who have not ensured there are proper systems or resourcing in payroll.   

The letter will include a consent form for FENZ to recover of any overpayment.   FENZ wants to only pay the balance of what they say the member owes from the amount FENZ says it owes the member.  This will reduce the remediation payment.   FENZ is attempting to offset what they owe members with what they say members owe them in overpayments.

The NZPFU advises members that it is not in your interests to sign the consent allowing for FENZ to deduct any money from the total remediation payment.   

The Wages Protection Act sets out the situations where an employer can lawfully recover overpayments.   FENZ will need to demonstrate to the NZPFU that any recovery comes within those requirements.  We are currently seeking legal advice on FENZ’s reasons, calculations and the period for remediation.

FENZ has known it has had issues with calculations for various leave types correctly for years.  FENZ has had the benefit of not paying the sums that have been underpaid to our members. 

It will be unlawful for FENZ to withhold any money FENZ owes to members on the basis that the member has refused to consent to any recovery.

There is also the recent wage theft behaviour of deducting wages for strikes when our members were not striking due to not being rostered on, being on various leave, still responding to an ongoing emergency at the time the strike begins, working flexible hours, etc.  This remediation does not address any wage theft or other ongoing issues with individual pay, including parental leave, change in duties, or all issues with ACC.

Anyone facing any recovery of any alleged overpayment should not consent to any deduction until FENZ has proven it is legally entitled to do so.

In unity,
Wattie Watson
National Secretary