Protecting Wages - complying with the law

Recent law changes have highlighted the need to comply with the Wages Protection Act and it is starting to bite - a Wellington Grocer has had to pay $53,000.  $25,000 was a fine for breach of law.  The rest was paid to the employee for reimbursement of short-payments and unfair deductions.

The unfair deductions amounted to premiums for providing a  job to a migrant.  

All employers must take care about what gets deducted from a person's pay.  Broadly you can deduct PAYE; anything instructed by law (such as by the Ministry of Justice); and anything specifically authorised by the employee  (if reasonable).  This includes deductions from final pay.

If in any doubt let us have a look at your practices and agreements and see if you need to get your documents right.

Need help managing staff?

Mike has a wealth of experience advising on every aspect of the employer-employee relationship. I can give you per-phone guidance or work along side you to make things happen.

Keeping You Posted

11 April 2024

Essential Update - 11th April 2024

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10 January 2024

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4 December 2023

Final 2023 Essential Update

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