The Employment Relations Authority has fined an employer which failed to keep all of its records up to scratch. The wage, holidays, time and leave records lacked the required details and their employment agreements lacked required clauses and contained illegal provisions.

The starting point for the fine was set at $8,000, but was increased to $10,000 because the employer had been in breach of its obligations on several previous occasions.

It is important that employers know what they need to include in their employment records.

Every employer must at all times keep a record (called the wages and time record) showing, in the case of each employee employed by that employer,—

  • The name of the employee:
  • The employee’s age, if under 20 years of age:
  • The employee’s postal address:
  • The kind of work on which the employee is usually employed:
  • Whether the employee is employed under an individual employment agreement or a collective agreement:
  • In the case of an employee employed under a collective agreement, the title and expiry date of the agreement, and the employee’s classification under it:
  • The number of hours worked each day in a pay period and the pay for those hours:
  • The wages paid to the employee each pay period and the method of calculation:
  • Details of any employment relations education leave taken

An employer must at all times keep a holiday and leave record showing, in the case of each employee employed by the employer, the following information:

  • The name of the employee:
  • The date on which the employee’s employment commenced:
  • The number of hours worked each day in a pay period and the pay for those hours:
  • The employee’s current entitlement to annual holidays:
  • The date on which the employee last became entitled to annual holidays:
  • The employee’s current entitlement to sick leave:
  • The dates on which any annual holiday, sick leave, bereavement leave, or family violence leave has been taken:
  • Tthe amount of payment for any annual holiday, sick leave, bereavement leave, or family violence leave that has been taken:
  • The portion of any annual holidays that have been paid out in each entitlement year (if applicable):
  • The date and amount of payment, in each entitlement year, for any annual holidays paid out under section 28B (if applicable):
  • The dates of, and payments for, any public holiday on which the employee worked:
  • The number of hours that the employee worked on any public holiday:
  • The day or part of any public holiday specified in section 44(1) agreed to be transferred under section 44A or 44B and the calendar day or period of 24 hours to which it has been transferred (if applicable):
  • The date on which the employee became entitled to any alternative holiday:
  • The details of the dates of, and payments for, any public holiday or alternative holiday on which the employee did not work, but for which the employee had an entitlement to holiday pay:
  • The cash value of any board or lodgings, as agreed or determined under section 10:
  • The details of any payment to which the employee is entitled under section 61(3) (which relates to payment in exchange for an alternative holiday):
  • The date of the termination of the employee’s employment (if applicable):
  • The amount paid to the employee as holiday pay upon the termination of the employee’s employment (if applicable):

The wages and holiday and leave records must be kept—

  • In written form; or
  • In a form or in a manner that allows the information in the record to be easily accessed and converted into written form.

A failure to comply can quickly add up with maximum fines of $20,000 per breach.

 

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