The Employment Relations Authority has ordered an employer to pay over $99,000 following a labour inspector’s investigation that found several breaches to employee’s minimum entitlements.

During the investigation, the labour inspector found that the employer failed to pay the minimum wage, holiday pay, keep appropriate wage, time, holiday, and leave records, and made unlawful deductions from an employee’s wages.

The employer accepted the breaches and repaid the employees over $55,000.

However, the Authority explained a penalty was necessary in order to punish the employer and deter other employers from breaching minimum employment entitlements.

The Authority ordered the business to pay a penalty of $66,150. Additionally, the Director of the company was ordered to personally pay a penalty of $33,075.

The employer attributed the breaches to not having adequate systems in place to manage wages and records. If the employer had invested in the appropriate systems up front, it could have avoided the entire incident.

Failure to meet minimum employment standards is taken seriously by labour inspectors, and may result in expensive penalties.

If there are concerns that an employer has failed to provide your minimum entitlements, it pays to speak with a professional experienced in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-priced Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.


Alan Knowsley
Employment Lawyer