Holidays Act 2003 – annual leave pay remediation

As with many companies, especially those with staff whose hours can vary week on week, when questions were raised about certain aspects of the Holidays Act 2003, we reviewed the processes and calculations used through our restaurants.

It’s a very complex process and we’ve been working with the Ministry for Business, Innovation and Enterprise (MBIE), taking expert advice and consulting with Unite Union, to ensure we get things right and pay whatever is owed to current and former employees.

We’ve recently agreed with MBIE a method to recalculate annual leave pay. If you have worked for McDonald’s since November 2009 you may be owed some money. We are working to the best of our ability to ensure the process followed provides a fair outcome for current and former employees.

A team is now working on the calculations and we will provide more information and updates on our website, and advertise when we’re ready to confirm any payments.

 

As at 1.12.21 – We continue to work through calculations with MBIE, where good progress has been made, having received approval from them to proceed with the payments. We are currently updating calculations following MBIE’s feedback and preparing the employee portal, where you will go to update your details and claim your remediation payment. We believe we will be in a position to go live with the site with payments for phase one in the first half of 2022. Further updates will be posted here, along with notification to the general public once the portal is live. 

As at 20.06.22 - We continue to work with MBIE, and the decision has been made to combine remediation payments for both Annual Leave and Public Holidays together. By doing this, it simplifies the process for both current and past employees moving from three phases of claims to one. Enforceable Undertakings (EU’s) have been signed with MBIE for public holidays and calculations for each of the three phases have been completed by PwC. PwC are now working to combine the three phases, where internal checking will be completed, before final samples are sent to MBIE for sign off in accordance with the EU’s. While combining the three phases simplifies claiming of remediation for employees, it has unfortunately pushed out timing slightly. The expectation is final samples will be with MBIE in the coming months. Further updates will be posted here, along with notification to the general public once the remediation portal is live. 

As at 11.11.22 - We are continuing to work as quickly as possible with MBIE and PwC to complete remediation and appreciate your continued patience.

As at 22.12.22 - McDonald’s continues to work with MBIE to move remediation recalculations forward. Having combined both annual leave and public holiday remediation calculations, this will simplify the process for current and past employees at the time to claim. With these now combined, we will shortly be sending MBIE the final samples for checking. Once these have been checked, any final changes to calculations will be made. McDonald’s will then move into a phase where each franchisee will check their individual employee’s calculations to ensure accuracy. 

Current timelines agreed with MBIE, will see the remediation portal open for current and past employees to check if there is remediation due, towards the middle of 2023. Thank you for your continued patience and understanding.

As at 14.06.23 - McDonald’s are continuing to work with PwC and MBIE to get to a point where remediation payments can be made to current and past employees. While we aimed for payments to begin being made in mid-2023, we are not yet ready to move forward. We have provided MBIE with samples of employee’s calculations in line with the agreed methodologies. We are currently awaiting final signoff on the calculations from MBIE where we have provided them additional information that they requested. Once MBIE has confirmed they are ok with the calculations, we will move into a period where each franchisee that is included in the remediation process (past and present) will validate their calculations ahead of payments being made. At the time we are ready to move forward with payments, notification will be provided on our website and a portal made available for employees past and present to login and work through claiming any remediation due. Our new expected time for the portal to open is by the end of 2023. We appreciate the delay can be frustrating, however we continue to work with PwC and MBIE to ensure calculations are accurate and are committed to commencing remediation payments as soon as we can.

As at 16.11.2023 - McDonald’s continues to work with MBIE and PwC to get to a point where remediation payments can be made. Progress continues, and MBIE have now signed off the sample calculations. The project has now moved into a phase where calculations are being determined for all past and current employees that were employed during the remediation period. Franchisees included in the remediation will shortly receive recalculated figures for their employees. They will then work through a period of due diligence before signing off. It is at this point the employee portal will go live. McDonald’s has a compliance date with MBIE of 29th February 2024. This is the date that numbers will be shared with MBIE as part of the remediation process. Then the employee portal is planned to be live 1st May 2024.

As at 8.3.2024 – McDonald’s continues to work with MBIE and PwC to get to a point where remediation payments can be made. The project has moved into a phase of final checking of remediation calculations with Franchisees included in the remediation. This due diligence period is expected to be completed by May 2024. The employee portal is planned to be live in June 2024.

As at 14.6.2024 – there has been a slight delay in final phase of checking of remediation calculations. This has been communicated to MBIE, and it has been agreed to launch the employee portal in August 2024. Thanks for your patience as we work to complete the remediation process.