The Employment Court has fined a company
owner and director for aiding and abetting breaches of an employment agreement
by the employing company. The company
itself was put into liquidation by the owner prior to the proceedings in an
attempt to avoid liability.
The Court held that the director had
personally been involved in the unfair processes by the company in breach of
the employee’s employment agreement and that the actions taken were deliberate
and serious.
A penalty of $7,500 was imposed on the
director personally for aiding and abetting the breaches by the employing
company.
This case highlights that employers
can’t hide behind the shell of a company to avoid their responsibilities under
the Employment Relations Act and other provisions such as the proper payment of
wages.
Alan Knowsley
Employment Lawyer
Wellington
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