Employment - Breaching Standards

August 22, 2016

Breaches of minimum employment standards are still in the news. Be aware of what the standards are and whether your systems comply

It’s not only that if you’re found in breach, you are liable for penalties. A recent case saw a Labour Inspector challenge a determination with the result that the employer’s original penalty for non-compliance was increased by a factor of 9, raising the initial penalty of $500 to $4,500.

The employer had originally been ordered to pay $500 for multiple breaches of the Minimum Wage Act 1983 and the Holidays Act 2003. The Labour Inspector’s case was that each of the breaches carried a significant penalty and that there were also ongoing breaches which should have been taken into account. A breach of standards can be committed out of ignorance, poor advice or a mistake made in good faith just as much as if someone had deliberately done the wrong thing. Either way, a breach is still penalised.

The Employment Relations Authority may take into consideration that a mistake has been made in good faith and this may affect what penalties are awarded. The Authority will look at the severity of the breach, the impact on the affected employee and whether the employer requires a deterrent. It may also consider the need to send a message to other employers that minimum standards must be maintained or significant penalties could be imposed.

Don’t let a message be sent at your expense. Take a look at how you’re employing people and how you’re documenting it. If you want a sounding board or further information, please contact us.

For more information, contact:

 

Christine Johnstone

T: +64 3 379 0829
E: cjohnston@nexiachch.co.nz
www.nexiachch.co.nz

 

Andrew Hastie      

T: +64 3 379 0829
E: ahastie@nexiachch.co.nz
www.nexiachch.co.nz

 

 

Pam Clarke

T: +64 3 379 0829

E: pclarke@nexiachch.co.nz

www.nexiachch.co.nz

 

Craig Melhuish

T: +64 3 379 0829

E: cmelhuish@nexiachch.co.nz

www.nexiachch.co.nz

Craig Rhodes

T: +64 3 379 0829

E: crhodes@nexiachch.co.nz

www.nexiachch.co.nz

 

 

 

 

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