The Employment Court has fined a company owner and director for aiding and abetting breaches of an employment agreement by the employing company.  The company itself was put into liquidation by the owner prior to the proceedings in an attempt to avoid liability.

The Court held that the director had personally been involved in the unfair processes by the company in breach of the employee’s employment agreement and that the actions taken were deliberate and serious.

A penalty of $7,500 was imposed on the director personally for aiding and abetting the breaches by the employing company.

This case highlights that employers can’t hide behind the shell of a company to avoid their responsibilities under the Employment Relations Act and other provisions such as the proper payment of wages.         

Alan Knowsley

Employment Lawyer