The penalty came after the construction firm was found to have breached multiple employment laws
An Auckland construction firm has been hit with a five-figure fine this week after it was found to have issued unlawful employment contracts and breached multiple employment laws.
A Labour Inspectorate investigation found that Setia Construction has violated 17 employment laws and also had some of its visa-dependent migrant workers on unlawful casual employment agreements.
“In construction whether you have ten employees, or ten thousand, your compliance with employment law should be as solid as the foundations of the houses you’re building,” said Labour Inspectorate regional manager David Milne.
The unlawful employment agreements did not provide for entitlements such as sick leave and pay on public holidays. The firm also failed to provide employees the minimum wage or holiday and termination pay.
“It is the nature of the relationship that is important, not the label you give your employee in the employment agreement – and in any case, casual employees, like all other employees, are entitled to holiday pay,” said Milne.
“Too many employers take a misguided ‘no work, no pay’ attitude with casual employees that leads to entitlements to paid leave being ignored, opening themselves up to be penalised,” he added.
Milne also warned employers that everyone must meet their obligations, regardless of organisational size or employee base.
“We won’t accept any shortcuts when it comes to minimum standards, as every employee in New Zealand is entitled to receive at least the minimum wage, holiday pay, and have a written employment agreement,” he said.
