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Wages

Pay and Wage Disputes

What It Is

Pay and wage disputes arise when employees are not paid correctly for all hours worked, receive below-minimum wages, are denied overtime, or have unlawful deductions made from their pay.

Common issues include:

  • Being paid below the Minimum Wage Act 1983 rate.
  • Unpaid meetings, training, or overtime.
  • Employer withholding or deducting wages without written consent.
  • Miscalculated holiday pay under the Holidays Act 2003.
  • Employers failing to record actual hours or keep wage/time records.

Under New Zealand law, employees must be paid at least the minimum wage for every hour worked, and wage deductions must be consensual and lawful.

Your Rights and the Law

  • Minimum Wage Act 1983 s 6 – Employers must pay at least the prescribed minimum hourly rate for every hour worked.
  • Wages Protection Act 1983 s 5 – Deductions from pay are unlawful unless the employee gives written consent.
  • Holidays Act 2003 ss 16–71 – Requires correct calculation of annual leave, public holidays, and pay for closedowns.
  • ERA 2000 s 130 – Employers must keep accurate wage and time records; failure to do so is an offence.
  • ERA 2000 s 4 – Employers must act in good faith and be transparent about pay calculations and deductions.
  • A Labour Inspector v Smiths City Group Ltd [2020] NZEmpC 55 – Leading case establishing that pre-shift meetings count as paid work.
  • Just Hotel Ltd v A Labour Inspector [2023] NZEmpC 80 – Confirmed penalties for employers who underpay or withhold information from Labour Inspectors.

Process (How a Case Proceeds)

  1. Collect Evidence – Payslips, rosters, bank statements, contracts, and correspondence.
  2. Write to Employer – Request clarification and rectification of any discrepancies.
  3. Raise a Personal Grievance (PG) – Within 90 days if you’ve been disadvantaged or underpaid (ERA s 103(1)(b)).
  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 Involvement – Inspectors can investigate breaches, enforce payments, and impose penalties.

Potential Outcomes / Remedies

  • Payment of arrears and interest.
  • Penalties for breach of minimum-wage and record-keeping obligations.
  • Compensation for humiliation or loss of dignity (ERA s 123).
  • Compliance orders to maintain proper wage and time records.
  • Penalties for serious or deliberate underpayment.

Take Action Today

If your employer has underpaid you, made deductions, or refused to pay for all hours worked, you may have a strong pay or wage dispute claim. Get in touch with us to arrange a no-obligation consultation about your situation. We’ll assess your case, explain your options, help gather evidence, request your employment file, and help you pursue the justice and compensation you deserve.