National’s 2010 review of the Holiday’s Act identified challenges around holiday payments but failed to fix issues within the former Labour Department, says Labour’s Economic Development spokesperson David Clark.
“In 2010 Cabinet signed off on the recommendations of a working group set up to investigate payroll problems. The Cabinet paper considered recommendations on holiday pay but Cabinet didn’t adopt them.
“National has tried to claim this is a problem going back to the last Labour Government.
“Steven Joyce has been forced today to admit there was no due diligence when selecting the payroll for MBIE. Given the Labour Department wrestled with problems with holiday pay in 2010, it is remarkable its payment system was adopted in 2012 without scrutiny.
“In Parliament today Steven Joyce had to admit issues dated back several years. His Ministry is responsible for payroll guidance across the country. He has failed to ensure legal compliance in his own ministry.
“It’s time he took responsibility,” says David Clark.