28 Jan 2015

Chch company told to pay up over wages

11:54 am on 28 January 2015

A Christchurch construction company involved in the city's rebuild has been ordered to pay wage arrears to workers and fined for failing to pay the minimum wage and keep accurate employment records.

The Ministry of Business, Innovation and Employment (MBIE)'s Labour Inspectorate investigated Verney Construction last year after two of its workers complained.

The investigation found the company had been treating them as contractors when in fact they were employees.

The case was taken to the Employment Relations Authority, which found the employees should be paid the minimum wage and holiday pay arrears calculated by the inspectorate.

Verney Construction was fined $2000 for breaching orders of compliance.

Labour Inspectorate Stuart Lumsden said the case was part of a disappointing trend of employers treating employees as contractors to avoid keeping records, making IRD payments and paying the minimum wage and holiday entitlements.

Get the new RNZ app

for ad-free news and current affairs