Workers argue company breached certified agreement causing stress and hardship
The Employment Relations Authority (ERA) recently dealt with a compliance application from five construction workers who claimed their former employer failed to honour a mediated settlement agreement, leaving them without promised compensation payments despite financial hardship.
The workers argued that the construction company and its director breached a clause in their records of settlement by stopping instalment payments that were due under the certified agreement.
They sought a compliance order to recover outstanding amounts totalling over $33,000 and penalties for the breach of the settlement terms.
The workers argue that they faced significant financial stress from the non-payments, with some supporting families and elderly parents while dealing with visa costs and mortgage obligations.
The five workers were all employed by the construction company on Accredited Employer Work Visas between September 2022 and February 2024.
During their employment, they experienced delays in wage payments and were sometimes not paid at all, with several workers also not receiving correct holiday pay and public holiday entitlements.
Following termination of their employment, the workers lodged a Statement of Problem with the ERA.
The parties attended mediation, resulting in each worker entering into Records of Settlement with the company and its director. The...
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