ERA finds multiple breaches of employment standards in retail business case
The Employment Relations Authority (ERA) recently dealt with a case involving a worker who claimed extensive wage arrears and dismissal compensation against his former employer and family members, with the ERA finding multiple breaches of employment standards and awarding significant remedies.
The worker argued he was underpaid throughout his employment, denied proper holiday entitlements, and unjustifiably dismissed when the family business was sold.
He sought to hold the company director and her husband personally liable for unpaid wages, claiming the business had failed to meet basic employment obligations despite family connections.
The worker arrived in New Zealand in July 2023 under an Accredited Employer Work Visa arrangement facilitated by his uncle and the uncle's wife, who operated a small retail store.
The family had arranged the employment opportunity to help the worker and his wife get ahead financially, with the company becoming an accredited employer solely for this purpose.
The worker's visa required him to be employed as a "Retail Supervisor" for at least 30 hours per week at not less than $29.66 per hour.
However, the company director told him the business could not afford this rate and agreed to record $29.66 in the employment agreement for visa purposes while actually paying only $23.00 per hour, later increased to $23.50.
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