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Minimum Employment Standards

What you need to know!

Towards the end of last year there were a number of cases brought before the Employment Relations Authority with Employers breaching minimum employment standards. These fines are not small and can be quite detrimental to a business.  For example;  Harjit Singh and his business, Nekita Enterprises Limited, were fined in penalties a combined $125,000 by the Employment Relations Authority for operating a dual payroll system, in which employees were being paid less than minimum wage. Nekita Enterprises Limited was ordered to pay $90,000 in penalties for breaching employment laws. Singh had to personally pay a further $35,000 as the person responsible for the breaches. The penalties were on top of the $21,390, Nekita Enterprises had already paid out to the four former employees for wage and holiday pay entitlements. https://www.odt.co.nz/star-news/star-business/christchurch-liquor-baron-harjit-singh-fined-exploiting-migrant-workers

It’s safe to say that employing people comes with certain responsibilities, so in order to start the new year strong, we thought this would be a great time to remind everyone that all employees have minimum rights, even if they are not written in an employment contract. They are not a contractual matter as you cannot force an employee to agree to less than the minimum standards, but you can negotiate with employees to better terms in an employment agreement.

The links above will send you to the relevant legislation, however, you can also find more information at https://www.employment.govt.nz/#gref

If you have any questions or concerns about whether you meet the minimum employment standards, please call us on  0800 HR LIVE. We want you to have all the support you need and if we can help in any way, let us know!  


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