The Papatoetoe restaurant failed to pay employees time and a half during public holidays
Employers are being reminded of their obligations over the festive period after one Auckland restaurant was hit with a five-figure fine for failing to pay staff fairly.
New Lucky Star was ordered to pay $20,000 in penalties and $2,700 in arrears after a Labour Inspectorate investigation found the company hadn’t paid 10 employees time and a half for working public holidays.
This was the second time the Papatoetoe-based restaurant had been found committing these breaches, with an improvement notice issued by a labour inspector to the business in 2015.
“The Labour Inspectorate stands for fair workplaces and fair competition, and will not tolerate businesses failing to provide employees with at least their minimum entitlements,” said Labour Inspectorate regional manager David Milne.
“Ultimately this employer’s breaches left employees working hard to sustain the business out of pocket, meaning they’ve had less to take home and put under their tree this year,” he continued.
“This case should provide a good reminder for businesses during the coming holidays of their obligations, and that being a Christmas Grinch when it comes to entitlements can prove costly.”
Along with not paying time and half for public holidays, New Lucky Star and its directors Tony Ping Kwan Kwok and Yam Ching Wong failed to keep compliant holiday and leave records.
The ERA acknowledged that while the employer had not been driven by a wish to prevent employees being treated fairly, ultimately this was occurring as a consequence of their breaches.
New Lucky Star had now repaid all arrears owed, which were $2,700, with the employer having paid a day off at the employees’ normal rate instead of time and a half during their non-compliance.
