The Employment Relations Authority has penalised
an employer for failing to pay its employees correctly and not providing
employment agreements.
A Labour Inspector opened an
investigation and requested all pay and employment records from the employer. A
number of employees were being paid less than the minimum wage, several were
not receiving the correct holiday pay, and nearly two hundred employees had not
been given employment agreements.
The employer has to pay $16,532 to
employees for breaches of holiday and minimum wage entitlements. Additionally,
the business must pay a further $50,000 in penalties for the breaches.
The Managing Director, as the person
directly responsible, was also personally fined $10,000 for failing to keep
adequate records and provide employment agreements.
It is vital that employers utilise
effective record keeping systems and adhere to employment standards. Failure to
do so may result in steep penalties being imposed both on the employer and
personally where appropriate.
In
the case of uncertainty it is wise to speak with an experienced professional in
the area.
Alan Knowsley
Employment Lawyer
Wellington
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