Transport businesses pay the price for employment breaches
Recently at least two transport operators have hit the headlines for the all the wrong reasons. Failing to look after their people, both fell foul of the Employment Authority and had to pay the price, literally. One operator was ordered to pay an employee $55,000 on wages arears, holiday pay and Kiwisaver entitlements. That business unfortunately went into liquidation as a result.
The other operator had to pay $37,000 due to multiple breaches of employment law that added up to migrant exploitation.
Both of these cases could have been avoided.
National Road Carriers works directly with the Ministry of Business, Innovation and Employment (MBIE) on employment issues. This ensures the advice available to members is accurate and if there is any doubt we can obtain clarification directly from MBIE. What is clear is the Employment Authority pays close attention across industries, and the transport sector is no exception. Nor should it be.
These cautionary examples are a great reminder for transport operators to lift up the bonnet on their business, and make sure that when it comes to looking after your people, you are doing it by the book.
Sometimes employment law can be confusing – and we are there to help. If you are not sure whether you’ve got an employee on the right contract, whether you have to pay Kiwisaver, or not sure how holiday pay works for a part time employee – give us a call. The team at NRC are there to help.
Migrant and worker exploitation has no place in New Zealand – it is not the Kiwi way. If you see it, call it out with the operator, and call it in with the authorities.
Stay safe
Justin
Justin Tighe-Umbers
CEO | National Road Carriers Assn
DDI: +64 9 636 2951
