The employees lived in the employer’s furnished
garage, and ate with the employer’s family. The employer dismissed the brothers
and told them to move out of her house after they failed to wash and dry some
tablecloths. The brothers had been told by another employee that he would do
the chore for them.
The ERA found that under his individual employment
agreement the employee was to start work on the 20th of November,
but had not begun work until the 9th of December due to a lack of
available hours at the restaurant. The ERA held that an employer cannot refuse
to pay an employee just because they are not needed until a later date.
The employee’s mother owed the employer $12,000. It
was agreed during the employee’s employment that his income would be used to
repay the debt. The ERA held that this arrangement was not part of the
employee’s contract and was not an excuse for the employer not to pay him his wages.
The ERA also found that a notebook which the employer
used to record payments to the second brother did not meet statutory
requirements for keeping a wages and time record. The ERA considered that the
payments were not wages but a loan by the employer to the employee.
The ERA held that the brother’s dismissals were
unjustified as no fair process was undertaken when dismissing the employees,
and failing to wash tablecloths was not a serious misconduct. The ERA doubted
whether washing tablecloths was part of their employment agreement but felt it
was just an informal family arrangement. The ERA also noted that washing
tablecloths in their own time, on a public holiday, was unlikely to be a
reasonable requirement under their contracts.
The ERA awarded the first employee $6500 in wage
arrears, $500 holiday pay, $300 for lost wages plus $6,000 compensation for
humiliation, loss of dignity and injury to feelings as well as $1,000 in
penalties for the employer not keeping wages or time records. The second
employee was awarded over $150,000 in wage arrears, $12,000 holiday pay, $300
for lost wages plus $8,000 compensation for humiliation, loss of dignity and
injury to feelings, and $4,000 in penalties for the employer not keeping wages
or time records.
Alan Knowsley
Employment Lawyer Wellington
Employment Lawyer Wellington
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