Employer fined $40,000 for failing to pay correct holiday pay…

An employer who failed to follow the correct process in calculating their employees’ leave entitlements has been ordered to pay a penalty of $40,000 by the Employment Relations Authority.

The employer operated a small business.. The business had several employees working under temporary work visas, who were deemed to be especially vulnerable to breaches of employee rights.

The employer had breached these employees’ rights by:

•        Underpaying leave entitlements;
•        Underpaying wages worked for public holidays;
•        Failing to provide employees with alternative holidays;
•        Failing to pay employees for unworked public holidays, and
•        Failing to keep full holiday and leave records

The ERA held that the breaches gave the employer an unfair advantage in the marketplace and that their repeated non-compliance warranted a large penalty.

Failure to follow the rules around employee entitlements can be costly and can damage your company’s reputation. If there is confusion around what an employee is entitled to, it pays to seek advice from a professional experienced in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price 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.

Gianna Menzies