Employment law breaches cost farm
The Employment Relations Authority (ERA) has ordered Viewbank Dairy Ltd near Rakaia to pay $7500 in penalties and repay money owed to workers as a result of employment law breaches.
The authority found that workers received incorrect holiday pay and money had been deducted from their pay to cover accommodation without proof they consented to the arrangement.
A Ministry of Business, Innovation and Employment (MBIE) labour inspector audited the farm after receiving complaints from two former employees who claimed they had not received their final week’s wages.
The 1300-cow dairy operation employed both permanent and casual staff, many of whom were overseas workers on working holidays.
The ERA decision said Viewbank Dairy breached the Minimum Wage Act because of the way it provided short term employees with fully furnished accommodation valued at $100 (including electricity, wi-fi and Sky TV) in lieu of wages.
The farm supplied emails from former employees confirming the practice.
One from a German man said Viewbank Dairy provided him with accommodation in return for work, but he was also paid, and the arrangement was explained to him before he took up the position.
But the ERA said emails from former employees did not confirm the agreed value of the lodgings and there was no evidence they had consented to it in their contracts.
The employer was given 28 days to pay nine former employees what they were due.
The $7,500 penalty related to the failure to keep proper records, and to issue and keep copies of employment agreements.
Labour Inspectorate southern regional manager Stuart Lumsden said in all 16 workers were affected and the investigation found several of them had been treated as casual employees, when in fact they were permanent.
‘‘As a result, employees were provided with incorrect holiday entitlements.
‘‘They were getting paid eight per cent on top of their usual pay, when in fact they were entitled to four weeks’ holiday pay, pro-rated, under the Holidays Act 2003.’’
He said sloppy book keeping was an issue with most of the 24 farms audited in the southern region since last June.
‘‘Without accurate documentation the employer has no way of demonstrating that correct entitlements are provided to employees.
‘‘We’re working with Dairy NZ to try to lift the game across the board and make sure farms are up to scratch.
‘‘It comes down to the individual farmer taking responsibility. They’re running a business and the maximum fine [under the Employment Relations Act] is $20,000 for a business.’’