Employer banned for three years...

The Employment Court has banned the Director of a failed company for three years from being an employer of any employees, either directly, or as an officer of any employer.  The ban arose following multiple illegal breaches of the Holidays Act.

The employer, which has gone into receivership, had a clause in all of its Employment Agreements to the effect that, if employees failed to give six weeks’ notice of resignation, the employer could withhold any payment to them including any holiday pay.  The Court held that such clauses were penalties and unenforceable.

As the Director had been involved in numerous other companies which had also been involved with similar breaches, the Court banned him for three years from employing any staff.

In addition the Court imposed penalties totalling $20,000. The director has to pay $10,000 of this personally.

Alan Knowsley

Employment Lawyer Wellington