Key Takeaways
- Nick and Kathy Barnes, a retired Waikato couple, are facing a lengthy wait for tens of thousands of dollars of holiday pay owed to them by Health NZ.
- Errors in calculating holiday pay date back more than 15 years and will cost Health NZ about $1.8 billion in payouts.
- Most current employees have been repaid, but Health NZ has only recently started paying former staff, and many won’t see a cent for another year.
- The repayment process is complex, involving historical data and numerous payroll platforms.
- The New Zealand Nurses Organisation is calling for an easier process, citing the frustration and pressure on the health system caused by the slow repayments.
Introduction to the Holiday Pay Issue
The holiday pay issue has been a longstanding problem for Health NZ, with errors in calculating holiday pay dating back more than 15 years. The total cost of the payouts is estimated to be around $1.8 billion. Nick and Kathy Barnes, a retired Waikato couple, are among those affected by the issue. They have worked at Hamilton’s hospital for more than six decades between them and are owed tens of thousands of dollars in holiday pay. The couple is frustrated with the constant delays in payment deadlines, with the latest deadline being pushed back to November 2026.
Frustration at Constant Delays
Nick Barnes, an intensive care specialist at Waikato Hospital for 30 years, and his wife Kathy Barnes, a nurse there for almost 40 years, are both retired and waiting for their holiday pay. They have not received direct communication from Health NZ about the delays and have had to find out about them through external sources such as nurses’ union Facebook posts. The couple expects to receive around $20,000 each in holiday pay. Kathy is frustrated with the lack of communication and the fact that they have not received an apology or a commitment to pay the money on a definite date. She also notes that when payroll would accidentally overpay them, they would receive stern communication demanding the money back, but now that Health NZ owes them money, they are not receiving the same level of communication.
Impact on Former Employees
A former nurse, who wishes to remain anonymous, is also unhappy with the wait and delayed deadlines for payment. She notes that the people who worked the most anti-social hours, such as 12-hour shifts or longer, are the ones who are owed the most money. She has only received updates when she writes to politicians, who then refer her questions to Health NZ. She expects to receive around $20,000 in holiday pay, which her family needs. The former nurse thinks that the repayment process is unfair and that Health NZ should have a single process that guarantees settlement at the same time for all employees.
Repayment Process Complex
Health NZ executive national director, people and culture and health and safety, Robyn Shearer, says that the repayment process is complex and involves historical data and numerous payroll platforms. As of December 12, more than 83,000 current employees have received over $657 million in payments. Staff from most regions have been fully paid what was owed to them. Former employee payments began in October, but some won’t be made until later next year or even 2027. Shearer notes that not everyone is due to receive a payment, as some people have been paid correctly for their leave. Each payroll project is remediating current employees first, then former employees.
Call for Easier Process
New Zealand Nurses Organisation president Kerri Nuku says that the repayment process has been appalling for current staff, too. The payments have been budgeted for by the government, but the schedules have changed, and the goalposts keep changing. Nuku notes that it’s not fair that union members have had to wait for what is legitimately their money. The slow repayments are another blow to the health system, which is already under pressure. Nuku calls for an easier process, citing the need for a single process that guarantees settlement at the same time for all employees. The repayments are run by a contracted company, and the process has already cost over $100 million.