Company wrongfully deducts $2,000 from employee’s final pay…

An employee has succeeded in the Employment Relations Authority after it held that their employer wrongfully deducted $2,000 from their final pay.

The employer deducted the money as he believed that the employee owed him $2,000 from a cash advance. The employee argued that the $2,000 was part of a bonus the employer had agreed to give to him in order to match a salary package offered to him by a competitor.

The ERA held that because the employer could not point to any evidence proving that the money was a cash advance, they must pay the employee the $2,000 plus interest and costs.

Alan Knowsley
Employment Lawyer Wellington