| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2016] NZERA Auckland 399 |
| Hearing date | 14-Sep-16 |
| Determination date | 07 December 2016 |
| Member | A Dallas |
| Representation | M Urlich; N Singh |
| Location | Auckland |
| Parties | Labour Inspector v Binde Enterprises Ltd |
| Summary | ARREARS OF WAGES AND HOLIDAY PAY – Applicant sought arrears of wages and holiday pay – PENALTY – Applicant sought penalties for failure to pay minimum wage, failure to pay annual holiday pay, failure to pay public holiday pay, failure to keep holiday and leave records, failure to pay wages in full, and failure to provide written employment agreements – COSTS – Applicant sought contribution to costs |
| Abstract | AUTHORITY FOUND –ARREARS OF WAGES AND HOLIDAY PAY: Respondent failed to pay minimum wage and holiday pay. Respondent made unlawful deductions from employee’s wages. Respondent to pay applicant $186,646 arrears of wages and $22,209 arrears of holiday pay.PENALTY: 81 breaches identified for penalty purposes. Breaches of Holidays Act 2003, Employment Relations Act 2000, and Wages Protection Act 1983 globalised to one breach per section. Breaches serious. No remorse shown and respondent did not try to ameliorate effect of breaches. No evidence provided about respondent’s ability to pay penalties. $220,000 penalty appropriate.COSTS: Half day investigation meeting. Appropriate to apply notional daily tariff. Respondent to pay applicant $1,750 contribution to costs. |
| Result | Applications granted ; Arrears of wages ($186,646.52) ; Arrears of holiday pay ($22,209.64) ; Penalty ($220,000)(payable to Crown) ; Costs in favour of applicant ($1,750) ; Disbursements in favour of applicant ($71.56)(filing fee)($754.31)(administrative support)($283.59)(service costs) |
| Main Category | Arrears |
| Statutes | ERA s65 ; ERA s131 ; ERA s132 ; ERA s132(2) ; ERA s 141 ; ERA s161(1)(m)(iii) ; ERA s173 ; ERA s174E ; ERA s228(1) ; ERA s229(1)(a) ; ERA Second Schedule cl12 ; Minimum Wage Act 1983 s6 ; Minimum Wage Act 1983 s10 ; Wages Protection Act 1983 s5 ; Wages Protection Act 1983 s13 ; Holidays Act 2003 s 27 ; Holidays Act 2003 s 49 ; Holidays Act 2003 s 50 ; Holidays Act 2003 s 56 ; Holidays Act 2003 s 76 ; Holidays Act 2003 s 81 ; Interpretation Act 1999 s33 ; Fair Work Act 2009 (Cth) |
| Cases Cited | Borsboom v Preet Pvt Ltd [2016] NZEmpC 143 ; G L Freeman Holdings Ltd v Belley [2016] NZEmpC 44 ; O’Shea v Pekanga o Te Awa Farms Ltd [2016] NZEmpC 19 ; Otago Hotel etc IUOW v Pacific Park Motor Inn Ltd (t/a Pacific Park Dunedin) [1989] 1 NZILR 175 (LC) ; Tan v Yang [2014] NZEmpC 65, [2014] ERNZ 733 ; Xu v McIntosh [2004] 2 ERNZ 448 (EmpC) |
| Number of Pages | 21 |
| PDF File Link: | 2016_NZERA_Auckland_399_amended.pdf [pdf 292 KB] |