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