Contracting company fined over record-keeping failure

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A labour contracting company has been fined for failing to provide employment agreements, and failing to produce wage and time records for employees working at a Marlborough vineyard.

Blenheim-based labour contracting company KRSVP was brought before the Employment Relations Authority (ERA) after failing to comply with an Improvement Notice issued by the Labour Inspectorate, which requested that the organisation produce the documents.

The ERA ordered KRSVP to pay over $7,500 in penalties for failing to provide the records.

KRSVP denied employing the workers, telling inspectors the company was going out of business – however it was discovered that the company had recently changed its name.

The ERA found that the name change suggested the business remained active and was unlikely to be going into liquidation.

Labour Inspectorate Regional Manager Kevin Finnegan warned employers to be aware that legislative compliance is required at all levels of the supply chain.

“Employment records are a basic legal requirement. Without them employers cannot demonstrate they are providing workers with entitlements such as minimum wage and correct holiday pay,” he told The New Zealand Herald.

“Failure to comply with employment laws not only harms the workers but also the industry’s reputation.

“Businesses should make sure the suppliers they use are compliant and not exploiting workers.”

Breaches of these legislations can lead to penalties of up to $10,000 for individuals and $20,000 for companies.

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