fbpx
Print this page
Monday, 09 September 2013 14:42

Averaging wage ‘not lawful’

Written by 

A Stratford farmer is to pay a former worker wage arrears after the Ministry of Business, Innovation and Employment's Labour Inspectorate identified breaches of minimum employment rights.

The case follows Labour Inspectorate action in the dairy sector focussing on employer maintenance of accurate time and wage records.
The Labour Inspectorate found the worker's pay was averaged across seasons and didn't meet the minimum wage rate.

The worker was employed as a farm assistant between 2 November 2010 and 19 October 2012 and towards the end of his employment lodged a complaint with the ministry regarding his rate of pay.

He was paid a salary of $30,000 per annum, which rose to $32,000 per annum in April 2012, and was required to work 49-60 hours a week. His hours would drop to 38-44 hours a week in the dry season.

After an investigation by the Labour Inspectorate identified breaches of the Minimum Wage Act, a demand notice to repay $6473.77 in arrears was issued to the farmer.

The farmer then filed an objection with the Employment Relations Authority (ERA) on the basis weekly wages paid under the minimum wage should be offset against wages paid during the dry season.

In a determination released this week the ERA found that payment by way of salary cannot be used as a mechanism to avoid paying minimum wage and the arrears are to be repaid.

Labour Inspectorate general manager George Mason says any practice of seasonal averaging in the agriculture sector is not lawful.
"Averaging out pay across a season, especially for those earning low salaries, is likely to breach the minimum wage rates set in legislation," says Mr Mason.

"It will also likely breach requirements for paid holidays, including public holidays and special leave.
"Employees should be receiving at least the minimum wage for the hours, days and weeks actually worked and employers must maintain accurate time and wage records to ensure that this occurs"

The Labour Inspectorate takes any breaches of minimum employment rights seriously, with non-compliance attracting fines of up to $10,000 for an individual and $20,000 for a company.

More like this

Virtual CV valuable tool

With a 12-year history of recruiting specialised operators from overseas to service the agricultural contracting industry, Hanzon Jobs typically brings in around 200 people to New Zealand each year from the UK and Ireland.

Time for action — Editorial

OPINION: It's time for some real and fast action around allowing more seasonal workers into the country to help power NZ’s all-important agricultural and horticultural sectors.

Lack of labour

New Zealand kiwifruit growers are nervous about having enough people to work in the industry during the coming months, according to grower organisation NZKGI.

Vets in short supply

Julie South, whose company VetStaff specialises in recruiting veterinarians, says there is a shortage of vets in New Zealand and that this has been compounded by Covid-19.

Featured

National

NZ-EU FTA enters into force

Trade Minister Todd McClay says Kiwi exporters will be $100 million better off today as the NZ-EU Free Trade Agreement…

Machinery & Products

Factory clocks up 60 years

There can't be many heavy metal fans who haven’t heard of Basildon, situated about 40km east of London and originally…

PM opens new Power Farming facility

Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.