Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No [2014] NZERA Auckland 208
Hearing date 28 May 2014
Determination date 29 May 2014
Member R Arthur
Representation K Feeney (Labour Inspector, in person) ; No appearance
Parties Feeney, Labour Inspector v BY Ltd t/a Viz Cafe
Summary COMPLIANCE ORDER - Applicant sought compliance with improvement notice - Respondent required to comply with minimum statutory entitlements regarding written employment agreements, minimum wage, holiday pay and time and wage records - ARREARS OF WAGES - Applicant sought arrears of wages on behalf of employee -Respondent required employee to repay $200 from wages per week under threat work visa would be lost if payment not made - PENALTY - Applicant sought penalty for respondents failure to comply with improvement notice and respondent's breach of Wages Protection Act 1983 - No appearance for respondent
Abstract AUTHORITY FOUND -;COMPLIANCE ORDER: Significant failures in compliance. Compliance ordered.;ARREARS OF WAGES: Respondent breached Wages Protection Act 1983 by unlawful stipulation employee pay part of wages. Respondent to pay applicant $6,120 arrears of wages.;PENALTY: Respondent had adequate opportunity to meet requirements of improvement notice. Failure to observe all terms of notice. Substantial penalty required to punish respondent for non compliance and deter employers from similar behaviour. Partial compliance reduced amount of penalty that would have otherwise been ordered. $3,000 penalty appropriate for failure to comply with improvement notice. Amount employee required to pay represented significant portion of income. Breach not technical or inadvertent but deliberate, calculated and repeated. Substantial penalty required to punish respondent for coercing payment from vulnerable worker and to deter other employers who might engage in such conduct. No explanation and no remorse for conduct. Separate penalty appropriate as breaches serious in own right and involved different actions or omissions. $5,000 penalty appropriate for breach of Wages Protection Act 1983.
Result Applications granted; Compliance ordered; Arrears of wages ($6,120); Penalty for breach of Wages Protection Act 1983 ($5,000)($2,000 payable to applicant)($3,000 payable to Crown); Penalty for failure to comply with improvement notice ($3,000)(payable to Crown); Disbursements in favour of applicant ($143.12)(filing fees); No order for costs
Main Category Arrears
Statutes ERA s131;ERA s135(1);ERA s136;ERA s136(2);ERA s137(1)(a)(iiib);ERA s223F;ERA s229(1)(c);ERA Second Schedule cl12;Wages protection Act 1983;Wages Protection Act 1983 s12;Wages Protection Act 1983 s12A;Wages Protection Act 1983 s13
Cases Cited Feeney (Labour Inspector)v Danuja International (PVT) Ltd [2014] NZERA Auckland 165;Tan v Yang [2014] NZEmpC 65
Number of Pages 7
PDF File Link: 2014_NZERA_Auckland_208.pdf [pdf 114 KB]