Recently, the Crimes (Theft by Employer) Amendment Bill passed its second reading, marking a critical step towards criminalizing wage theft in New Zealand. This bill aims to make intentional non-payment of wages a criminal offense, bringing it under the Crimes Act.
What is Wage Theft?
Wage theft can occur in various forms, some of which might be unintentional. The Bill focusses on intentional non-payment but even unintentional wage theft can get employers into hot water under employment law. Some examples can include:
Unpaid Overtime: Not paying waged employees for extra hours worked beyond their contracted time.
Failure to Pay Minimum Wage: Paying less than the mandated minimum wage, even if both parties agree, is illegal.
Misclassifying Employees as Contractors: Labeling employees as independent contractors can lead to unpaid benefits such as holiday and sick pay.
Unauthorized Deductions: Deducting costs for training, tools, or uniforms without documented consent from the employee.
"Off-the-Clock" Work*: Requiring tasks before or after scheduled shifts without compensation.
How Employer Direct Can Support Employers
Navigating wage regulations can be complex, especially as new legislation emerges. Employer Direct provides businesses with streamlined HR solutions that ensure compliance and minimize the risk of wage disputes. Our experienced team offers a free DIY HR checklist identify potential risks and provides guidance on best practices for payroll and employee classifications. By partnering with Employer Direct, businesses can focus on growth, knowing that their HR processes are legally sound.
Stay proactive by keeping accurate records, updating wage rates, and documenting all agreements. For more guidance on safeguarding your business from wage theft claims, contact Employer Direct for a consultation today.
Need peace of mind about your payroll or HR practices?
Reach out to Employer Direct today for expert advice, a free audit, and ongoing HR support that keeps your business compliant and your team happy.
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional.
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