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Construction company to pay $6000 for poor employment records

A construction company in Auckland has been penalised $6000 by the Employment Relations Authority (ERA) after a Labour Inspectorate investigation found breaches of record keeping.

The investigation found Jes Construction Limited, which has a sole director, Jialiang Hong, did not keep compliant wage, time, holiday, or leave records, or provide employment agreements.

“Every employee in New Zealand must be provided with an employment agreement, there is no excuse for failing to do so,” says Labour Inspectorate regional manager Jeanie Borsboom.

“Not only is it a legal requirement which is important to both the employer and employees, it provides a great foundation for an employment relationship.”

Mrs Borsboom noted there were free tools online, such as the Employment Agreement Builder (EAB) launched by business.govt.nz, which means that businesses can quickly and easily make agreements.

“There is significant support available on employment.govt.nz to inform employers of their obligations and help them keep compliant records – a longstanding aspect of New Zealand law.

“Keeping records is really important, as they help prove an employer is providing their employees with all entitlements such as at least the minimum wage and holiday pay.

“Anyone running a business in New Zealand which employs people must make sure they familiarise themselves with all their obligations, or they could face penalties.”

As a result of these penalties Jes Construction Limited will be placed on the stand down list, preventing them from sponsoring new visas to recruit migrant labour for 12 months.

“Anyone wanting to bring labour into New Zealand must be compliant with their employment obligations – it should be clear from this list that access to migrant labour is a privilege and not a right.”

MBIE encourages anyone concerned about their employment situation, or the situation of someone they know, to call 0800 20 90 20 where they can report their concerns in a safe environment.

You can read the full ERA determination online. (external link)