| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2017] NZERA Christchurch 185 |
| Hearing date | 23 May 2017, 29 June 2017 (2 days) |
| Determination date | 31 October 2017 |
| Member | C Hickey |
| Representation | J Ongley ; D Bell (in person) |
| Location | Christchurch |
| Parties | Labour Inspector ; Golden Fleece Sheepskin Manufacturing Company Ltd & Anor |
| Other Parties | Bell |
| Summary | PENALTY – Applicant sought penalties for first respondent’s breaches of compliance orders, Holidays Act 2003, Minimum Wage Act 1983 and failure to comply with improvement notice – Applicant sought penalty for second respondent’s involvement in breaches of minimum employment standards |
| Abstract | AUTHORITY FOUND –;PENALTY: First respondent did not comply with improvement notice. Breach deliberate and significant. No mitigating factors. First respondent failed to pay employees holiday pay with employees’ final pay. Breach serious and deliberate. First respondent paid one employee less than minimum wage for hours worked. Breach serious and affected vulnerable employee. No mitigating factors. Records provided in attempted compliance with Authority’s orders did not comply and unreliable. No penalty for breaching compliance order as same facts used to support penalty for failure to comply with improvement notice. First respondent’s financial circumstances warranted 80% reduction in penalties. $8,000 penalty appropriate. Second respondent was controlling mind of first respondent. Second respondent made decision to pay employee less than minimum wage and not pay holiday pay with final pay. Breaches serious and intentional. Employees vulnerable. Amounts owed since paid and second respondent not previously found to have breached employment standards. Second respondent’s financial circumstances warranted 80% reduction in penalties. $2,000 penalty appropriate. |
| Result | Application granted ; Penalty ($8,000)(payable by first respondent to applicant)($2,000)(payable by second respondent to Crown) ; Costs reserved |
| Main Category | Penalty |
| Statutes | ERA s3 ; ERA s5 ; ERA s130 ; ERA s133A ; ERA s134(2) ERA s134A ; ERA s135(4A) ; ERA s142(2) ; ERA s142(3) ERA s142W ; ERA s142X ; ERA s142Y ; ERA s223F ; Holidays Act 2003 s27 |
| Cases Cited | Borsboom v Preet PVT Ltd [2016] NZEmpC 143;Labour Inspector of the Ministry of Business Innovation and Employment v Golden Fleece Sheepskin Manufacturing Ltd [2017] NZERA Christchurch 108;Lumsden v Skycity Management Ltd [2017] NZEmpC 30;Strachan v Moodie (aka “Miss Alice”) t/a Moodie & Co [2012] NZEmpC 95 |
| Number of Pages | 21 |
| PDF File Link: | 2017_NZERA_Christchurch_185.pdf [pdf 307 KB] |