The Employment Court has found against the employee who
claimed he was underpaid $252. In the
Employment Relations Authority the claim had been upheld but the Employment
Court found that the method of calculation of the payment by the employer was
correct and that the Employment Relations Authority method of calculation was
incorrect. The difference between the
two figures was only $252 but the employer challenged the calculation in the
Employment Court because it has many employees and the implication of the
method of calculation would have far reaching effects on others in a similar
position.
The calculation related to a final payment when an
employee works a part of a month but is paid an annual salary based on a monthly
amount. The Employment Court found that
the annual salary should be divided by 260 normal working days (Monday to
Friday) in a year to obtain a daily rate and then that is multiplied by the
number of working days in the month that the employee worked.
Alan
Knowsley
Employment
Lawyer Wellington
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