Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No [2011] NZERA Christchurch 123
Hearing date 19 Jul 2011
Determination date 11 August 2011
Member J Crichton
Representation J Duff (in person) ; R Vohora
Location Dunedin
Parties Duff (Labour Inspector) v Maori Hill & Balmacewen Pharmacy Ltd
Summary ARREARS OF WAGES – Applicant claimed respondent failed to supply and maintain adequate wage records – Respondent claimed always provided records when requested – Respondent claimed paid employees’ wages in accordance with advice of Pharmaceutical Society of New Zealand (“PSNZ”) - Authority made further inquires of PSNZ about training wages at respondent’s request - Authority found, as shown by applicant’s inability to comprehend respondent’s payments, respondent’s recordkeeping and provision of requested records defective or, alternatively, respondent unable to adequately explain nature of payments – Pharmacy Industry Training Organisation (“PITO”) Guidelines (“Guidelines”) set out conditions under which employees undertook training – Guidelines specified applicants enrolling in course must first enrol with PITO – Found employees never enrolled with PITO or polytechnic – Respondent claimed failure to enrol employees’ fault and respondent not responsible for enrolment matters – Found Guidelines stated enrolment onus on pharmacist and trainee – Found could only pay training wage where industry training involved at least 60 credits annually and, if employees not enrolled, could not obtain credits although obtained practical experience – Found Medicines Regulations 1984 r42(1) provided trainee not actively working towards completion of National Certificate and not legally entitled to continue working in dispensary – Found as not legally trainees adult minimum wage appropriate wage rate – Authority noted parties could not negotiate terms and conditions of employment where agreed terms did not satisfy minimum wage requirements – Found applicant entitled to $5,945 arrears of wages - PENALTY – Applicant sought penalty for failure to provide wage records - Found levying penalty would not assist compliance – No order for penalty – Applicant sought penalty for failure to pay wages - Found respondent experienced employer and knew or ought to have known legal position around trainees and advised employees promptly – Found respondent failed to meet obligations as good and fair employer and normally penalties would apply – Found however stay of possible penalty appropriate as more important wage arrears promptly paid – Leave reserved for applicant to return to Authority if orders not satisfied within stipulated time period and request penalty applied – Trainee Pharmacy Technicians
Result Application granted ($854.17)(first employee) ($2,920.51)(second employee) ($2,171.19)(third employee); Application dismissed (penalty) ; No order for costs
Main Category Arrears
Statutes Medicines Regulations 1984;Medicines Regulations 1984 r42(1);Minimum Wage Act 1983
Number of Pages 8
PDF File Link: 2011_NZERA_Christchurch_123.pdf [pdf 27 KB]