The Employment Court has penalised an employer for significant breaches in underpaying minimum entitlements and failing to provide employment agreements.

The Labour Inspector investigated the employer and requested copies of all wage and holiday pay records. Limited records that had been poorly maintained were provided by the employer.

After piecing together the available records, the Inspector established that several employees had been paid below minimum wage and hundreds had not received correct holiday pay or employment agreements.

Despite the arrears of over $45,000 being repaid in 2019, the Court imposed further penalties of $86,400 on the company and $40,800 on the Director personally.

The Court accepted the breaches had not been deliberate, accepting the Director understood limited English and had a poor understanding of employment law practices, but maintained this was no excuse. The breaches were significant and extensive, affecting over 300 employees.

It is vital that employers maintain their records to a high standard and adopt appropriate employment practices. Failure to do so can result in significant penalties.

If you are unsure of your employment practices, or are concerned your minimum entitlements are being breached, it pays to consult a professional experienced in the area.




Alan Knowsley
Employment Lawyer
Wellington