M Contractors, a sole trader providing seasonal labour to
horticultural operation in Gisborne, has been ordered to pay more than
$30,000 by the Employment Relations Authority (ERA) in penalties for
breaching employment laws and arrears owed to workers.
The
Ministry of Business, Innovation and Employment’s Labour Inspectorate
brought the case before the ERA after investigating a complaint about
the employer failing to pay holiday entitlements to staff.
An
extensive investigation by the Labour Inspectorate found that the
employer, Mele Ford, failed to keep and produce compliant wage and time
records, leave records and employment agreements. There was also
$19,455 in unpaid holiday pay owing to 31 past employees.
Labour
Inspectorate Wellington Regional Manager Kevin Finnegan says employment
records are required to be kept by law and the provision of minimum
employment entitlements such as holiday pay are vital for managing any
business.
“Flouting basic employment laws not only harms the
workers, but also the reputation of the horticulture sector which Mrs
Ford was supplying labour to,” he says.
The ERA concluded that Mrs
Ford’s business practices were “irresponsible” and “reckless”. She was
ordered to repay the arrears to workers and pay a $10,000 penalty for
breaching the law.
“This ruling sends a clear message to employers
that failure to comply with the minimum employment standards will not
be tolerated. Mrs Ford is no longer operating her business,” says Mr
Finnegan.
Employers who breach the employment law will be subject
to enforcement action which can include penalties of up to $10,000 for
individuals and $20,000 for companies.
Source : MBIE