An employer has been ordered to pay $93,500 by the Employment Relations Authority after it was found that the employer had been paying two of its employees seven dollars per hour, far less than minimum wage.

An investigation into the employers operations was launched by the Labour Inspector. During the investigation the Inspector found that the employer had failed to meet the minimum employment standards, by failing to pay the employees minimum wage. The employer also failed to pay annual, and public holiday leave, as well as sick leave. Further breaches of minimum employment requirements were the employer’s failure to provide a written employment agreement, a failure to keep wage, time, holiday and leave records, and making deductions from wages for accommodation without the consent of the employees.

The amount owed by the employer to the employee was worked out to be $93,503.This figure is made up of minimum wage arrears, unpaid holiday and sick leave, and interest payments on top of what was owed.

The Authority has not yet decided on how much they will order the employer to pay as a penalty, but it will likely be a significant amount of money. If there is confusion about what obligations an employer owes to its employees, it is wise to seek advice from a professional with experience in the area.


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