Question :
If you have paid your employees less than 100% of their contracted pay rate during lockdown or beyond, then I urge you to read and understand the implications of this recent Employment Relations Authority case. Click link.Simply, it finds that employers who did not follow due process, despite Covid-19, will be liable to compensate their employees (current or former) for any underpayment.

Question submitted 07/07/20 @ 12:07pm
Industry: HR & Talent
  • Hi There,

    I cant see any link?


    Here’s the case in question. There are no surprises in the findings. Perhaps @gillian-service might comment, as this is definitely her area of expertise.


    So if you unilaterally changed employee’s pay rates, without consultation and engagement, then you will be liable to compensate people impacted, potentially. I wonder how big this ‘number’ is.

    Business New Zealand is looking at this case given the ramifications for business. The Employment Relations Act allows a party to proceedings in the Authority to appeal the decision to the Employment Court. There is a 28 day appeal period from the date of the decision so we still have several days to go before we know whether Dove will take the issue to the Employment Court. My view is an appeal is likley. If the matter is appealed Business NZ may take an interest in the case, either informally or formally. I would encourage anyone that is concerned about the case to contact Business New Zealand. The best contact person is Paul Mackay. I have been in touch with him and he has agreed for me to provide his email address to you all – pmackay@businessnz.org.nz

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