$200,000 penalties for short-paid wages…

The Employment Court has convicted and imposed penalties on two employers who were in partnership in the hospitality industry.  They intentionally short-paid wages and holiday pay over many years to their staff, amounting to over a quarter of a million dollars. 

After an investigation by the Labour Inspector they paid the staff the short-paid wages and holiday pay.  The Court also imposed penalties totalling $200,000 on the husband and wife for these intentional breaches, which involved not paying the minimum wage rate and not paying holiday pay.  They also failed to keep wage, time, holiday pay and leave records. 

The Court commented that the failure to pay the proper wages and holiday pay was a complete breach of good faith.  The wife was involved in the short payments to a lesser extent and her penalty was assessed as $20,000.  The husband, who more involved, was fined $180,000.




Alan Knowsley
Employment Lawyer
Wellington