| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2017] NZERA Auckland 337 |
| Hearing date | 25 Oct 2017 - 26 Oct 2017 (2 days) |
| Determination date | 26 October 2017 |
| Member | V Campbell |
| Representation | R Denmead ; Z Cui |
| Location | Auckland |
| Parties | Labour Inspector v Educasia Media Ltd |
| Summary | RECOVERY OF MONIES – Applicant sought recovery of a premium – ARREARS OF WAGES AND HOLIDAY PAY – Applicant sought arrears of wages and holiday pay – PENALTY – Applicant sought penalty for respondent’s breaches of ERA, Wages Protection Act 1983, Minimum Wage Act 1983 and Holidays Act 2003 – COSTS – Applicant sought contribution towards costs |
| Abstract | AUTHORITY FOUND –;RECOVERY OF MONIES: Respondent received $50,000 employment premium. Respondent to pay applicant $50,000 recovery of monies.;ARREARS OF WAGES AND HOLIDAY PAY: Respondent did not pay first employee wages, pay for public holidays that would otherwise have been working days or holiday pay on termination of employment. Respondent to pay applicant $27,766 arrears of wages and holiday pay for use of first employee. Respondent did not pay second employee wages for training period, holiday pay or pay for public holidays that would otherwise have been working days. Respondent to pay applicant $5,267 arrears of wages and holiday pay for use of second employee. Respondent did not pay third employee wages, holiday pay or pay for public holidays that would otherwise have been working days. Respondent to pay applicant $4,115 arrears of wages and holiday pay for use of third employee. Interest payable.;PENALTY: Respondent received premium. Respondent failed to pay three employees minimum wage. Respondent failed to pay holiday pay during closedown period, on termination of employment or pay for public holidays that would otherwise have been working days. Respondent failed to keep wage and time and holiday and leave records. Vulnerable employees. Need for deterrence. Respondent initially co-operated with Labour Inspector. Respondent not in strong financial position but benefitted from paying employees less than law allows. $54,000 penalty appropriate.;COSTS: Less than one day investigation meeting. Respondent to pay applicant $2,250 contribution towards costs. |
| Result | Applications granted ; Recovery of monies ($50,000) ; Arrears of wages and holiday pay ($27,766.80)(first employee)($5,267.56)(second employee)($4,115.63)(third employee) ; Interest (5%) ; Penalty ($28,800)(payable to applicant)($25,200)(payable to crown) ; Costs in favour of applicant ($2,250) ; Disbursements in favour of applicant ($71.56)(filing fee) |
| Main Category | Penalty |
| Statutes | ERA s130 ; ERA s174E ; Holidays Act 2003 s23 ; Holidays Act 2003 s34 ; Holidays Act 2003 s49 ; Holidays Act 2003 s80 ; Minimum Wage Act 1983 s6 ; Wages Protection Act 1983 s12A(1) |
| Cases Cited | Borsboom v Preet PVT Ltd [2016] NZEmpC 143;Labour Inspector v Tech 5 Recruitment Ltd [2016] NZEmpC 167;Sears v Attorney-General [1994] 2 ERNZ 39 (EmpC) |
| Number of Pages | 15 |
| PDF File Link: | 2017_NZERA_Auckland_337.pdf [pdf 200 KB] |