Over in Australia recently two restaurants were fined over $334,000 following an investigation into the restaurants paying teenage staff in pizzas and soft drinks.

The Judge criticised the restaurants and said, “Such a practice belongs in the dark ages”.

It will come as no surprise that in New Zealand employers also must pay staff at least the minimum wage in actual money. While benefits can count towards a total remuneration package, employees must be paid the relevant minimum wage in money.

There are three minimum wage rates:

1. Employees 16 years and over must be paid at least the adult minimum wage rate, unless they are starting-out workers or trainees.
2. “Starting out” workers must be paid the minimum starting-out wage rate.
3. Trainees over 20 years of age must be paid at least the minimum training wage rate.

Employees and employers can agree to any wage rate so long as it is not less than the relevant minimum wage rate.

There are very few exceptions to the minimum wage obligations. Those include where the worker is under 16, and where a minimum wage exception is in place (which is very rare).

Recent developments in New Zealand law have shown the minimum wage also applies to over-time (such as in sleep-over situations, where an employee must be paid at least the minimum hourly rate).

The minimum wage is a monetary amount. It cannot be made up with food items. There are some limited exceptions where board or lodging provided by the employer can form a certain limited percentage of wages, but the general rule is that the minimum wage is paid in money.

Breaches of minimum wage legislation can lead to investigations and fines, so it is important to pay staff correctly.