Christchurch hospitality business fined

10 September 2015

Christchurch hospitality business fined for breaching labour laws

The Employment Relations Authority (ERA) has ordered a Christchurch hospitality business to pay more than $22,000 in penalties and arrears to workers for breaching employment law.

The Ministry of Business, Innovation and Employment’s (MBIE’s) Labour Inspectorate brought the case before the ERA against G.L Freeman Holdings Limited and its sole director and shareholder Gordon Freeman, who ran the Redwood Hotel and Sequoia 88 restaurant until early 2015.

After an extensive investigation the Labour Inspectorate found that G.L Freeman Holdings Limited failed to pay four former employees a combination of unpaid holiday and/or sick pay and/or unpaid wages. It was also discovered that some receptionists were regularly rostered on annual leave, for a day a week, without any consultation and without having applied for leave.

Labour Inspectorate Southern Regional Manager Stu Lumsden says the exploitation of workers is not welcome and breaches New Zealand law.

“This ruling sends a clear message to employers that failure to comply with the minimum labour standards will not be tolerated,” says Mr Lumsden.

“The ERA found there was a need to impose a penalty to signal a more general deterrence for some employers, or as an encouragement for them to continue to, or to start to, pay employees their minimum entitlement,”

The ERA determination is available here http://employment.govt.nz/workplace/determinations/

Employers who breach the employment law will be subject to enforcement action which can include penalties of up to $10,000 for individuals and $20,000 for companies.

The Ministry encourages anyone in this situation, or who knows of anyone in this situation, to call its contact centre on 0800 20 90 20 where their concerns will be handled in a safe environment.

ENDS

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