Ryman Healthcare one of many companies snagged by $237m holiday pay problem

The work of that team, and the wider inspectorate, resulted in more than $237m in remediation payments being made to 227,300 employees across numerous organisations during that period, she said.

Holiday pay problems are widespread. Photo / 123rf

Ryman was one of many large employers completing remediation of Holidays Act miscalculations, she said.

“It has recently reached the payment phase after complying with an enforceable undertaking to identify breaches and recalculate entitlements.”

The company employs about 7000 staff.

Borsboom said that while the Labour Inspectorate no longer has a specialist team focused on the Holidays Act, it continues to investigate and enforce breaches.

The Labour Inspectorate enforces and monitors compliance with minimum employment standards.

In October, RNZ reported how Health New Zealand Te Whatu Ora had started making backdated holiday payments to ex-staff.

Chief financial officer Bevan McKenzie said Holidays Act remediation payments totalling $4.7m were processed in one day for 1029 former Taranaki employees, about a third of those who were underpaid.

Health NZ has around 130,000 former staff and 90,000 current employees on 24 payrolls affected by the Holidays Act remediation programme, which covers the period since May 2010. 

Bevan McKenzie of Health NZ.

The Herald was sent a notice about the Ryman breach.

That contained Ryman’s response with Premium Payroll Solutions’ name and logo included.

Ryman had completed an independent audit in co-operation with MBIE and Premium, it told staff.

Parties had undertaken a full recalculation of all leave payments to ensure compliance with the law, Ryman said.

That involved a complete recalculation of all payments and leave balances since May 2019.

“We have set up a website where former team members of Ryman Healthcare who were employed between May 2010 and May 2024 can check whether they may have been affected by this recalculation and if there are any potential backpays owing to them,” the notice said.

Premium is managing the situation for Ryman, the notice said.

Ryman’s annual report blamed “the complexity of the Holidays Act and the nature of our dynamic workforce”.

Ryman has 49 villages here and in Australia which are home to more than 15,000 residents.

The spokesperson said the company was like many others that had identified holiday pay issues.

76 and 78 Park Terrace, opposite Hagley Park in Christchurch where Ryman Healthcare got consent for a $240m development for a new retirement village project. But in September 2025, real estate agents CBRE said they were marketing the land for sale. Ryman said it would no longer build there. Photo / CBRE

“We have now completed a thorough review and recalculation of historical leave entitlements and payments for all current and former New Zealand-based team members employed between May 2010 and May 2024.

“Remediation of affected current team members has been completed and we are now initiating communications with former team members to finalise payments to those affected, with the support of an external payroll specialist,” the spokesperson said.

No answers were provided to these questions:

Why did this happen?How many Ryman staff are involved?What locations are they in?Over what period of time did this happen?How much money is involved?What plans are there for those paid too much?Is compensation payable for those who got too little?

The company deferred or abandoned plans for a number of new villages as the housing downturn hit and people could not sell their own homes to move.

Ryman last year bailed on consented plans for a $240m, seven-level retirement village on one of the most prestigious addresses in Christchurch, where the company was founded.

Employment New Zealand has a guide on the Holidays Act, a calculations checklist, answers to frequently asked questions and remediation calculations.

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.

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