| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2014] NZERA Christchurch 181 |
| Hearing date | 26 Aug 2014 |
| Determination date | 11 November 2014 |
| Member | H Doyle |
| Representation | S Galbreath ; D Hixon (Labour Inspector, in person) |
| Location | Nelson |
| Parties | Trubet Holdings Ltd v Hixon (Labour Inspector) |
| Summary | PRACTICE AND PROCEDURE – Applicant objected to respondent’s improvement notice – Whether applicant breached Minimum Wage Act 1983 – Apprentices – Whether applicant entitled to pay apprentices minimum training rate from commencement of employment before industry training programme entered into – Whether applicant breached Wages Protection Act 1983 – Deductions from wages – COUNTERCLAIM – PENALTY – Respondent sought penalty for applicant’s breach of Minimum Wage Act 1983 and Wages Protection Act 1983 |
| Abstract | AUTHORITY FOUND –;PRACTICE AND PROCEDURE: National certificate in carpentry industry training programme registered on national qualifications framework. Implication into employees’ employment agreements (“EA”) of requirement to undertake at least 60 credits per year of industry training programme not necessary to give business efficacy to EAs. Definition of ‘worker being required by EA to undertake credits’ did not sit easily with some future obligation to undertake credits. Implication into EA of requirement to undertake credits not reasonable or obvious where employee on trial period. Employee receiving some form of training on basis parties would enter into formal apprenticeship not sufficient for employees to be paid training rate. Employees entitled to be paid adult minimum wage before training agreement commenced. Applicant breached Minimum Wage Act 1983. Applicant to provide respondent with confirmation employees paid correct minimum wage rate prior to commencement of training agreements. Applicant to provide respondent with confirmation of start date of two employees’ employment. No written consent to deductions from employees’ wages. General deductions clause in EAs did not provide specifically for applicant to deduct training fees paid by applicant. Applicant breached Wages Protection Act 1983. Objection to improvement notice dismissed. Appropriate to vary date by which applicant to provide information to respondent. Respondent entitled to extend time for compliance with respect to one employee. Appropriate in circumstances to rescind requirement in improvement notice that training fees be repaid to employees.;COUNTERCLAIM – PENALTY: Applicant felt strongly that entitled to pay employees minimum training rate from commencement of employment. Breach of Wages Protection Act 1983 inadvertent rather than deliberate. No penalty. |
| Result | Applications dismissed ; Orders Made ; No order for costs |
| Main Category | Practice & Procedure |
| Statutes | Education Act 1989 s246A;Education Act 1989 s253;ERA;ERA s223D;ERA s223E;ERA s223F;Holidays Act 2003 s50;Industry Training and Apprenticeships Act 1992 s2;Minimum Wage Act 1983;Minimum Wage Act 1983 s4A;Minimum Wage Act 1983 s4B;Minimum Wage Act 1983 s6;Minimum Wage Act 1983 s7;Minimum Wage Act 1983 s8;Minimum Wage Act 1983 s8A;Minimum Wage Act 1983 s8B;Minimum Wage Act 1983 s8C;Minimum Wage Act 1983 s8D;Minimum Wage Act 1983 s9;Minimum Wage Act 1983 s9(a);Minimum Wage Act 1983 s10;Minimum Wage Order 2007 r3;Minimum Wage Order 2008 r3;Minimum Wage Order 2009 r3;Minimum Wage Order 2010 r3;Minimum Wage Order 2011 r3;Minimum Wage Order 2012 r3;Minimum Wage Order 2013;Minimum Wage Order 2013 r3;Minimum Wage Order (No 2) 2013;Wages Protection Act 1983;Wages Protection Act 1983 s4;Wages Protection Act 1983 s5;Wages Protection Act 1983 s12A;Wages Protection Act 1983 s13 |
| Cases Cited | BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266;Jonas v Menefy Trucking Ltd [2013] ERNZ 651;Maori Hill and Balmacewan Pharmacy Ltd v O’Sullivan [2013] ERNZ 409 |
| Number of Pages | 20 |
| PDF File Link: | 2014_NZERA_Christchurch_181.pdf [pdf 344 KB] |