| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2016] NZERA Auckland 169 |
| Hearing date | 10 Aug 2015 and 15, 16, 17 & 21 Mar 2016 (5 days) |
| Determination date | 30 May 2016 |
| Member | Rachel Larmer |
| Representation | S Blick ; S Sharma |
| Location | Auckland |
| Parties | Labour Inspector v Sharmas & Sons (2009) Ltd and Anor |
| Other Parties | Sharmas & Sons Ltd |
| Summary | ARREARS OF WAGES AND HOLIDAY PAY – Applicant sought arrears of wages and holiday pay – PENALTY – Applicant sought penalties for respondent’s failure to provide employment agreements and arrears |
| Abstract | AUTHORITY FOUND -;ARREARS OF WAGES AND HOLIDAY PAY: Respondents’ failure to keep accurate employment records prejudiced applicant’s ability to bring wage arrears claims. Respondents failed to prove on balance of probabilities applicant’s evidence incorrect. First respondent to pay applicant $20,556 arrears of wages and holiday pay. Second respondent to pay applicant $24,776 arrears of wages and holiday pay.;PENALTY: Penalties necessary because of respondents’ failure to comply with minimum code legislation. Breaches serious, deliberate, consistent and over long period of time. Vulnerable employee significantly disadvantaged as consequence of ongoing breaches. Imbalance of power between respondents and employee. $8,000 penalty appropriate for failing to provide written employment agreements. $20,000 penalty appropriate for respondent’s failure to pay minimum wage. $14,000 penalty appropriate for respondent’s failure to pay holiday pay. |
| Result | Applications granted ; Arrears of wages and holiday pay ($20,556)(first respondent)($24,776)(second respondent) ; Penalty ($10,000)(first respondent)(payable to Crown)($11,000)(first respondent)(payable to Crown)($11,000)(second respondent)(payable to applicant) ; Costs reserved |
| Main Category | Penalty |
| Statutes | ERA s65;ERA s65(1);ERA s65(2)(a);ERA s65(4);ERA s67A;ERA s130;ERA s130(1);ERA s131;ERA s132(2)(a);ERA s132(2)(b);ERA s135(2);ERA s136;ERA s174E;ERA s228;Holidays Act 2003 s16;Holidays Act 2003 s21;Holidays Act 2003 s23;Holidays Act 2003 s24;Holidays Act 2003 s25;Holidays Act 2003 s27;Holidays Act 2003 s27(2);Holidays Act 2003 s46;Holidays Act 2003 s49;Holidays Act 2003 s50;Holidays Act 2003 s55;Holidays Act 2003 s56;Holidays Act 2003 s60;Holidays Act 2003 s75;Holidays Act 2003 s76;Holidays Act 2003 s81;Holidays Act 2003 s83;Minimum Wage Act 1983 s6;Minimum Wage Act 1983 s8A;Minimum Wage Act 1983 s10 |
| Cases Cited | Warwick Henderson Gallery Ltd v Weston [2006] 2 NZLR 145 (CA), [2005] ERNZ 921;Tan v Yang [2014] NZEmpC 65, [2014] ERNZ 733;Xu v McIntosh [2004] 2 ERNZ 448 (EmpC) |
| Number of Pages | 23 |
| PDF File Link: | 2016_NZERA_Auckland_169.pdf [pdf 298 KB] |