Employer ordered to pay over $6,000 after incorrect payments of wages…

The Employment Relations Authority has ordered an employer to pay over $6,000 after failing to pay an employee for their notice period.

The employment agreement under which the employee was working contained a clause that stated he would be paid a month’s wages if his employment was terminated.

During the employment, the business that employed the employee was sold. The employee was at that point made redundant, as his employment was not transferred to the new company.

The employee received an email from the employer stating that his role had been disestablished effective immediately, and that he would receive one month’s payment as prescribed by his employment agreement. A payslip confirming the payment was sent to the employee, but no payment was ever made.

The employee brought a claim for the unpaid wages to the Authority.

The employer claimed that he had transferred the employment to the new employer, and that he was therefore not liable to pay for the notice period of the employee.

The Authority dismissed this argument, as there was no evidence that an employment transfer had occurred. Furthermore, the email regarding redundancy was sent from the email address of the initial employer, showing that a transfer never took place.

It was decided that the original employer therefore owed the employee for the month of wages that he was entitled to receive, as per the employment agreement.

The employer was ordered to pay over $6,000 as compensation for the unpaid wages.

If there is confusion around an employer’s duties to an employee, it pays to seek advice from a professional with experience in the area.

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