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Wages ProtectionWages Protection Act 1983 The Wages Protection Act 1983 sets out the way wages must be paid, and prevents unlawful deductions from wages.
It covers such things as:
When and how should wages be paid?Employees should be paid on the day and at the intervals agreed with the employer. Employers cannot change the normal pay day without the agreement of the employee. Employees have the right to be paid in cash unless:
Employers are not allowed to control the way employees spend their money.Women and men must receive the same pay rates for doing the same or substantially similar work. An employer cannot discriminate due to an employee’s colour, race, ethnic or national origins, sex (including pregnancy or childbirth status), martial or family status, age, disability, religious or ethical belief, political opinion, sexual orientation or union activity. What deductions can be made from wages?Employers should generally not make deductions from employees' wages. Deductions can be made in the following circumstances:
If an employee is provided with board and lodging, a deduction of 15% for board, or 5% for lodging, can be made. Can an employer recover wages overpaid to an employee?An employer can recover an overpayment of wages by deductions from wages only in strictly limited circumstances, as set out in the Wages Protection Act. If an employee resigns without giving the required amount of notice, an employer cannot make deductions or withhold their wages or holiday pay unless the employee has given their written consent. A written employment agreement may include a clause giving the employer permission to deduct wages if an employee resigns without giving the required notice. If the employee has signed the agreement, this can be taken as written consent for the employer to make this deduction. Can payments be made differently under a Collective Agreement?The Wages Protection Act 1983 allows for collective agreements to set out other deductions and methods of payment. Can deductions be made for union fees?The Employment Relations Act 2000 inserts into all union members' employment agreements a requirement to deduct union fees. Unions, employees and employers may vary these arrangements in their agreement. Can an employee recover money owed by an employer?If an employer does not pay all the wages, allowances or other money that have been agreed to in an employment agreement, the employee (or the employee’s union or representative) can go to the Employment Relations Authority to ask for what is owed, after following the problem solving procedures. (See Can you fix the problem yourself?) The Authority will hear wages claims dating back six years. Employees can also ask the Authority to order the employer to comply in future with agreed conditions of employment, including pay rates. What happens if a business goes into receivership?When a business goes into receivership all its debts are ranked in order of priority as set out by law. Wages and holiday pay owed to employees have a high priority, after secured debts such as mortgages. Employees should take their claim for any outstanding wages or holiday pay to the Receiver – the person appointed to manage the businesses affairs. Can an employer be held personally responsible for paying wages?If a Labour Inspector is taking a case to the Authority to recover minimum wages or holiday pay from an employer that is a company, the Authority may authorise the action to be brought personally against a director, officer or agent of that company. However, the Authority can only authorise such an action if:
Where an action (that the Authority has authorised) is heard, if it is proved that the director, officer or agent did direct or authorise the default in payment, that person can be held personally liable for the amount owing, as can the company itself and any other director, officer or agent who also directed or authorised the default. Get a copy of the ActYou may download a PDF copy of the Act, and make as many copies as you like (New Zealand legislation has no copyright.) This service is free. This PDF copy shows the Act in the same format as the official hard copy. To view this file, you must have Adobe Acrobat Reader installed. You can download this software for free from adobe.com. Minimum WagesThere are three minimum wage rates:
Minimum wage rates from 1 April 2009The adult minimum wage is $12.50 an hour. That’s $100 for an eight hour day, and $500 for a 40 hour week. The new entrants minimum wage and the training minimum wage are $10.00 an hour. That’s $80 for an eight hour day, and $400 for a 40 hour week. By law, employers must pay at least the minimum wage - even if an employee is paid by commission or by piece rate. The minimum wage applies to all workers aged 16 years or older, including home workers, casuals, temporary and part-time workers. The only exception is when an employee holds an exemption permit. Holiday pay must be paid in addition to the minimum wage. If an employee receives “pay-as-you-go” holiday pay, this payment must be a separate and identifiable part of their pay. An increase in the minimum wage will not affect an employee’s other conditions of employment, unless they agree to the changes. An employee being paid less than the minimum wage can complain to a Labour Inspector, who may investigate and act to recover any money owed. Employees can also get help from our mediators. Did not find what you where looking for? We recommend this search portal: www.departmentoflabour.co.nz Disclaimer & AcknowledgementThe material featured on this page was sourced directly from the Department of Labour and is subject to Crown copyright protection.The Crown copyright protected material may be reproduced free of charge in any format or media without requiring specific permission. This is subject to the material being reproduced accurately and not being used in a derogatory manner or in a misleading context. Where the material is being published or issued to others, the source and copyright status should be acknowledge. Neither the Department of Labour or the Employment Relations Centre takes responsibility for the results of any actions taken on the basis of information on this website, or for any errors or omissions.
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