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Deloitte deploys Idiom decision automation to fix Kiwi holiday pay mess

Deloitte deploys Idiom decision automation to fix Kiwi holiday pay mess

Software from Idiom helped calculate a $40 million payout at NZ Police

Decision automation software is helping to fix New Zealand's holiday pay mess

Decision automation software is helping to fix New Zealand's holiday pay mess

Deloitte is using decision automation software from Auckland-based Idiom to address widespread failures among employers to comply with the Holidays Act.

The consultancy giant uses Idiom's software to define payroll recalculation and remediation rules, while addressing incorrect calculations made by some payroll systems.

Widespread failures to correctly calculate holiday pay entitlements dating back to 2003 were discovered in 2016, meaning employers now have to recalculate the payments back six years.

Deloitte developed a rules-based approach to validate, transform, recalculate, and remediate complex payrolls over the six-year period.

The rules are continuously adapted and used by Deloitte consultants throughout the approach, which was first applied to the NZ Police payroll remediation, resulting in a payout exceeding $40 million to 20,000 staff.

Consulting partner Darren Wood said the firm is using Idiom's software to deliver highly effective payroll recalculation and remediation services to clients throughout New Zealand.

"Our recalculations are developed using a single and definitive implementation of the Holidays Act algorithm, regardless of which payroll system is in focus," he said. "This provides a core base which enables consistent and repeatable calculations compliant with the Act."

Deloitte has so far remediated the payrolls for more than 20 employers across the country.

Idiom’s software, originally developed for use by insurer NZI in 2001, gives users hands-on control over defining and deploying specialist decision-making expertise. Plug-and-play rules are used to automate business algorithms on an industrial scale.

The implementation was one of two involving Idiom that picked up gongs at the inaugural global Business Rules Excellence Awards.

The other awards were for Idiom’s work with PowerHealth, an Australian healthcare software developer which provides its PowerPerformance Manager and PowerBilling and Revenue Collection applications to healthcare organisations worldwide.

Idiom’s plug-and-play rules technology was used to separate the costing/revenue and billing rules from the underlying applications, enabling users to create their own rules to address wide variations in jurisdictional and institutional practice.

“Our software tools and development approaches are disruptive in the best possible way, returning real control of the algorithms that lie at the heart of commercial systems back to their business owners," said Mark Norton, CEO and founder of Idiom.

"The effect is to make their systems more agile, more transparent, and more durable, while at the same time reducing the time, cost, and risk to develop.

"We are fundamentally remaking the economics of software development by delivering these desirable and critical changes, quickly, safely, and at lower cost.”

Idiom now has offices in New Zealand, Australia, and the US.


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Tags softwaredecision makingDeloitteIdiomHolidays Act

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