The Employment Relations Authority has
ordered an employer to pay $25,000 in wage arrears, a $40,000 penalty, and
$4,500, in costs for breaching its worker’s minimum entitlements.
The employer had been issued with a compliance
notice by a Labour Inspector. 18 months later, the Labour Inspector initiated
an audit and requested copies of all timesheets, records of holiday pay and
leave, and pay records.
The employer provided a number of
incomplete or incorrect documents. In respect of holiday pay and leave
entitlements, they provided none at all. Additionally, it had become apparent
during the audit that there were completed timesheets that had dates allocated
to days that had never occurred in the corresponding calendar year.
The Authority found there were breaches
in the requirement to maintain accurate time records in either a written form,
or a way that could easily be accessed and converted into written form. The
workers had also been significantly underpaid in their wages and holiday pay.
Furthermore, the employer failed to
accurately record hours worked, or holiday and leave entitlements.
When it imposed the penalties, the
Authority categorised the breaches as intentional, rejecting explanations from
the employer.
It is essential that employers maintain
accurate and up to date records of all hours worked and pay-related matters.
Employers must be able to produce these records on request, and if unable to do
so may face significant penalties.
If you are concerned you are not
receiving your minimum entitlements, it pays to consult a professional
experienced in the area.
Alan Knowsley
Employment Lawyer
Wellington
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