It pays to be proactive…

The latest cab off the rank in the Labour Inspectorate audit investigations is Jetstar, who today announced they were repaying their 255 staff over $2m in arrears over the last 10 years. These arrears have come about after the Labour Inspectorate undertook an audit of the airline (completed in 2018), which found a number of issues in how Jetstar were applying the Holidays Act for their employees.

In our experience, organisations that take a proactive approach to looking at their holiday pay configuration and setup are able to undertake their reviews, reconfiguration and recalculation at their own pace and without the pressure and rigour of an enforceable undertaking, as dictated by the Labour Inspectorate. In addition, taking a proactive approach significantly reduces an organisation’s risk of penalties being imposed by the Labour Inspectorate for any misinterpretation of the application of the Holidays Act.

The other area for organisations to consider is their ongoing management of risk & compliance to the Holidays Act. Regular reviews, audits and assessments of how the Holidays Act is being interpreted and applied within the organisation is critical. This includes system configuration, processes, documentation and employment agreements. This is not a set and forget activity, which is often what trips organisations up.

ResolvePay can assist with providing this assurance as we offer an annual health check, which can provide your organisation with the assurance you are continuing to apply the Holidays Act in a compliant manner.