Employee worked more than 50 hours a week but paid only 40 hours
The Employment Relations Authority (ERA) has ordered the sole director of a liquidated Taupo restaurant to repay a former employee more than $40,000 in wage arrears.
Xian Zeng, sole director and owner of New Zealand LJ Food Express Taupo Limited, has been instructed to repay $40,421 in wages arrears, which include:
- $12,218.56 in unpaid annual holiday pay.
- $1,377.48 for failing to pay time and a half when the employee worked on public holidays
- $2,731.28 for failing to pay alternative holidays when the employee worked on public holidays.
- $118.75 for failing to pay for an unworked public holiday
- $23,975.20 in unpaid wages under s6 of the Minimum Wage Act 1983
Zeng has also been ordered to pay a penalty of $12,000, including $3,000 that will be paid to the employee, as well costs of $2,250 and disbursements of $1,671.20.
This puts Zeng's total payment to $56,342.44, according to the Ministry of Business, Innovation and Employment.
Exploiting an employee
ERA member Shane Kinley ordered the payment after reviewing findings from the Labour Inspectorate, which revealed that the Taupo restaurant exploited an employee who worked there from March 2019 to May 2021.
According to the Labour Inspectorate, the employee worked around 52.5 hours per week but was only paid for 40 hours, and worked on 23 public holidays where he didn't receive correct entitlements.
The inspectorate also found that the employee did not receive the payment for annual holidays when he left his employment.
In addition to these penalties, Kinley also found that the restaurant failed to keep wages and time records, as well as keep holiday and leave records.
The business went into liquidation in November 2022, but Labour Inspectorate head Simon Humphries stressed that this does not mean businesses can escape sanctions.
"While we prefer to support employers to ensure they comply with employment law, the Inspectorate will not hesitate to take enforcement action against those who take advantage of vulnerable workers," Humphries said in a statement.
