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Tuesday, October 7, 2025

Employee wins compensation over wage payment failures spanning eight months - HRD America

ERA awards damages and penalties for breaches of employment agreement obligations

The Employment Relations Authority (ERA) found that a truck driver was unjustifiably disadvantaged by his employer's repeated failure to pay wages on time, despite determining that his dismissal was not unjustifiable because he had requested the termination letter himself.

The driver claimed he was unjustifiably dismissed and disadvantaged when the logistics company failed to pay his wages regularly from November 2023 onwards.

The company argued it faced business difficulties that reduced available work, but continued paying the driver's full salary even when he declined alternative work assignments.

Employment context and wage payment issues

The driver commenced employment with the logistics company on 3 June 2022 as a truck driver qualified for Class 4 vehicles.

The company operated various trucks, including Class 4 vehicles for timber transport and Class 5 vehicles for container transport.

Until November 2023, the driver received regular and timely wage payments with no employment issues, describing his relationship with management as "like brothers" in a family-type environment.

However, from November 2023 onwards, he began experiencing delays in receiving his wages on the scheduled weekly payment dates.

The ERA found the company started experiencing business difficulties in late 2023 and early 2024, including loss of timber delivery contracts that directly affected work availability for...



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