A Northland petrol station is to pay $28,500 for committing serious breaches of employment law after an investigation by the Labour Inspectorate.
IXL Petroleum and Gas Limited, trading as a G.A.S station on State Highway 1 in Ruakaka, failed to pay at least the minimum wage, correct holiday pay, and was found to have made unlawful deductions.
“Every person employed in New Zealand must be provided with their minimum employment entitlements – anything less is unacceptable,” says Labour Inspectorate regional manager Loua Ward.
The Employment Relations Authority has issued a $14,000 penalty to IXL Petroleum and Gas Limited, and $14,500 in arrears, which were paid out to four employees.
“One staff member regularly had their wages deducted – with the employer paying them for 20 hours per week, despite their own records showing the employee worked significantly longer hours,” says Ward.
“Another employee reported being charged for customer drive offs and the employer seeking a premium in exchange for supporting their visa – both of which are illegal in New Zealand.”
Ward said that other franchisors should take note and ensure that their franchisees are meeting minimum employment standards.
“Not only do these cases mean penalties, if consumers don’t believe you pay your employees appropriately it can damage the brand as a whole,” she said.