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Breach of Minimum Protections

What It Is

Every worker in New Zealand is entitled to minimum employment standards under legislation such as the Employment Relations Act 2000, Minimum Wage Act 1983, Holidays Act 2003, and Wages Protection Act 1983.

A breach of minimum protections occurs when an employer fails to comply with these basic entitlements — for example:

  • Not paying at least the minimum wage for all hours worked.
  • Denying or miscalculating holiday or leave entitlements.
  • Failing to provide a written employment agreement.
  • Making unlawful deductions from pay.
  • Misclassifying employees as contractors to avoid legal obligations.

These breaches often overlap with unjustified disadvantage or good-faith breaches under the ERA 2000.

Your Rights and the Law

  • ERA 2000 s 4 — Employers must act in good faith, be open and communicative.
  • ERA 2000 s 65(1) — All employees must have a written employment agreement; failure to provide one breaches the Act.
  • Minimum Wage Act 1983 s 6 — Employees must be paid not less than the prescribed minimum wage for every hour worked.
  • Wages Protection Act 1983 s 5 — Unlawful to make deductions from wages without written consent.
  • Holidays Act 2003 ss 16–71 — Sets minimum entitlements to annual, public-holiday, sick, and bereavement leave.
  • Just Hotel Ltd v A Labour Inspector [2023] NZEmpC 80 — Confirmed that record-keeping failures and non-cooperation with a Labour Inspector breach the good-faith duty under the ERA 2000.
  • Tuariki v Affordable Property Maintenance Ltd [2022] NZERA 331 — Found deliberate underpayment of minimum wages and ordered back-pay plus penalties.

Process (How a Case Generally Proceeds)

  1. Identify the Breach — check payslips, hours worked, leave records, and contract details.
  2. Request Rectification — write to the employer outlining the breaches and asking for correction.
  3. Raise a Personal Grievance — if the breach causes disadvantage, under ERA s 103(1)(b), within 90 days.
  4. Mediation – The Ministry of Business, Innovation & Employment (MBIE) provides free mediation to seek early resolution. The process is voluntary and both parties must agree to attend. Most cases reach resolution at Mediation.
  5. Employment Relations Authority Investigation – If unresolved, a Statement of Problem is filed; the Authority investigates and issues a written determination.
  6. Employment Court Appeal – Possible for errors of law or procedure.
  7. Parallel Labour Inspector Complaint — Labour Inspectors from MBIE may investigate and prosecute the employer for statutory breaches.

Potential Outcomes / Remedies

  • Repayment of wages and holiday pay (including interest).
  • Compensation for humiliation or disadvantage.
  • Penalties under ERA s 4A for intentional or serious breaches.
  • Orders to fix record-keeping, pay compliance, or contract terms.
  • Reinstatement or declaration that the contract is valid and enforceable.

Take Action Today

If you believe you’ve been underpaid, denied leave, or never received a written contract, you may have a minimum-protections claim. Get in touch with us to arrange a no-obligation consultation about your situation. Our advocates will review your pay and leave records, liaise with your employer or a Labour Inspector if needed, and pursue all back-pay and compensation owed.