The Employment Relations Authority has ordered an employer to pay $33,000 after three employees successfully brought claims to the Authority for the recovery of unpaid wages and holiday pay.

The employees were hired by the employer, but were not formally given any documentation to confirm their employment. The employer paid them in cash and did not make payslips available to the employees.

The first employee worked for a period of 5 weeks. Over the course of this period, the employee was paid once and this payment only covered the first week of work performed.

The second employee worked for 6 weeks, but was not paid for the last 4 weeks of this period.

The final employee worked for the employer for 345.5 hours and received payment of only $800 for this work.

None of the employees were paid holiday pay at any point during the employment relationships.

The Authority decided that this was a clear breach of the required employment standards, and subsequently ordered the employer to pay $19,700 in wage arrears, $1,500 in unpaid holiday pay, $6,000 as a penalty for the breaches, and legal costs of $8,000.

If there is confusion around what is required of an employer in an employment relationship, it is wise to seek advice from a professional with experience in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley & Matthew Binnie

Litigation Team
Wellington