Media release
19 June 2013
Initial action taken over $4-an-hour wage claims
The Ministry of Business, Innovation and Employment has filed action with the Employment Relations Authority (ERA) in
Auckland against an Auckland restaurant chain following complaints that workers are being paid less than $4-an-hour.
The ERA action lodged by the Ministry’s Labour Inspectorate demands that the business owners provide wages and time
records, holiday and leave records and employment agreements for around 100 staff across the restaurant chain. The
owners failed to meet a deadline to provide the records - which are required to be kept by law. The Ministry is also
seeking penalties for failure to comply.
A total of 15 companies associated with the restaurant chain are involved and each face a maximum penalty of $20,000 in
respect of each failure to comply under the Employment Relations Act
The restaurants are being investigated after Labour Inspectorate and Immigration New Zealand carried out a joint
compliance operation, after receiving a number of complaints from workers.
Labour Inspectorate Northern Manager David Milne says the ERA action was a first step but if breaches are found to have
occurred, further enforcement action is likely to follow including improvement or demand notices, financial penalties or
court action.
Allegations included that workers were being paid around $265-a-week for up to 70 hours’ work or less than $4 an hour.
“The exploitation of workers is not welcome and breaches New Zealand law. The Labour Inspectorate will not hesitate to
enforce and prosecute breaches of minimum employment standards such as minimum wage and holiday entitlements,” Mr Milne
said.
“Most fair-minded New Zealanders do not support labour exploitation. By breaking the law, these businesses gain an
unfair advantage over their competitors.”
“I would also encourage anyone in this situation or who knows of people in this situation to phone our call centre on
0800 20 90 20 where concerns will be handled in a safe environment. “
ENDS