Essential HR

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.