| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2016] NZERA Christchurch 51 |
| Hearing date | 7 & 8 April 2016 (2 days) |
| Determination date | 20 April 2016 |
| Member | Helen Doyle |
| Representation | G La Hood ; S Dyhrberg, MA Obaidi |
| Location | Christchurch |
| Parties | Labour Inspector v Tech 5 Recruitment Ltd |
| Summary | DISPUTE – Parties disputed whether clauses in employment agreement (“EA”) constituted premiums under s12A Wages Protection Act 1983 (“WPA”) – Whether bond clauses were premiums – Whether payment deductions for trade testing were premiums – Whether transport deductions were premiums – PENALTY – Applicant sought penalties for breaches of WPA |
| Abstract | AUTHORITY FOUND -;DISPUTE: Bond clauses capable of being premiums. No evidence of respondent attempting to enforce bond clauses. Bond clauses did not amount to seeking of premium. Trade testing costs were respondent’s business costs, not employee’s costs. Trade testing clauses constituted premiums in contravention of s12A(1) WPA. Transport deductions were amounts agreed to and charged for provision of transport. Transportation deductions not premiums. Question relating to interpretation of trade testing clauses answered in favour of applicant and questions relating to interpretation of bond clauses and transportation clauses answered in favour of respondent.;PENALTY: Nature of breach one off. Vulnerable migrant employees had little knowledge of law and control over deductions. Respondent provided considerable support migrant workers. Breaches were fixed very shortly after concerns raised by applicant. Award of penalty unfairly disproportionate to breach found. No penalty. |
| Result | Questions answered in favour of respondent ; Costs reserved |
| Main Category | Dispute |
| Statutes | Shops and Offices Amendment Act 1936;Wages Protection Act 1983 s12A;Wages Protection Act s12A(1) |
| Cases Cited | Mehta v Elliott [2003] 1 ERNZ 451 (EmpC);Sears v Attorney-General [1994] 2 ERNZ 39 (EmpC);Zonneveld v Maudaara Ltd [2015] NZERA Christchurch 99;LJS Employment Ltd v Matthews ERA Auckland AA125/06, 11 April 2006;CTC Aviation Training (NZ) Ltd v Holman [2015] NZERA Auckland 297;Tan v Yang [2014] NZEmpC 65, [2014] ERNZ 733;Ahomiro v Toki [2015] NZERA Auckland 386 |
| Number of Pages | 25 |
| PDF File Link: | 2016_NZERA_Christchurch_51.pdf [pdf 1.4 MB] |