Underpaying workers costs dairy farmer $30,000
A Southland dairy farmer has been ordered to pay $30,000 after underpaying staff and keeping insufficient employment records.
Winton farmer Christoph Kenel was investigated by the Ministry of Business, Innovation and Employment labour inspectorate, relating to a period between September, 2018 and September, 2019.
The ministry said Kenel did not keep holiday and leave records for any of his employees, and three employees did not receive final holiday pay on termination of their employment. Of the 17 people Kenel employed in that time, only one had an employment agreement – and that had been supplied by the employee.
At least one employee did not get paid time-and-a-half or receive an alternative holiday for working on a public holiday.
The inspectorate investigated after a former employee complained about the lack of a written employment agreement and being paid less than the minimum wage.
The Employment Relations Authority found breaches of the Employment Relations Act and the Holidays Act.
The inspectorate found that Kenel’s wage and time records lacked sufficient detail, which made it impossible to tell whether workers had been paid at least minimum wage.
Kenel operated Swiss Farm in Winton as a sole trader.
The authority determined Kenel had been ‘‘wilfully blind’’. Kenel ‘‘took no steps throughout his history as an employer in New Zealand to familiarise himself with his legal obligations’’, the authority found.
Labour inspectorate dairy sector strategy lead Callum McMillan said the dairy farming industry was a focus area for the inspectorate.
‘‘It’s not enough that employers take a passive approach to compliance with employment standards,’’ McMillan said.
‘‘Employers have a responsibility to get the basics right, no matter how long they’ve been operating.’’
There was support readily available for farmers on matters of employment, McMillan said.
‘‘This makes it even more disappointing that there are still dairy farmers who are failing to get the minimum requirements right, and raises a question around the due diligence the industry has in place.’’