An employer has
been ordered to pay $100,000 after it breached the Holidays Act and the Minimum
Wage Act.
The employer
failed to pay seven employees at the minimum wage, failed to pay employees for
work on public holidays, and failed to pay out an employee’s holiday pay at the
end of their employment.
In addition to
the $100,000 penalty, the employer had agreed to, and was in the process of,
paying $96,500 in wage arrears to the employees.
This was not the
first time that the employer had been investigated for behaviour of this type.
While the
behaviour in this case was intentional, it should be noted that an employer is
still responsible (and in breach) if under-payment of minimum entitlements
occur inadvertently.
The rules
Minimum wage –
the minimum wage from (1 April 2019) is $17.70 per hour. This is set to increase in 2020 and 2021,
however, these changes are subject to the Government’s yearly review.
Public holidays
– if an employee works on a public holiday they should be paid at least time
and a half, as well as receive a day in lieu (also known as an alternative
holiday).
If a public
holiday falls on an ordinary day of work for the employee, but he or she does
not work, they are entitled to be paid for that day (a paid day off).
Holiday pay – an
employee is entitled to at least four weeks paid leave (also known as annual
leave) after they have worked for twelve months in continuous employment with
the employer.
Ben Ruback
Employment
Lawyer Wellington
No comments:
Post a Comment