Sham Contracting

Shine Lawyers in Australia has launched a class action against a company involved in the National Broadband Network. This has the potential to involve up to 4,000 employees and is claiming $400 million in unpaid wages.

Shine claim that the employer used sham contractor agreements.

In New Zealand the ERA has been critical of sham contracting arrangements. They have blankly said that “simply put if employment is disguised as contracting, it’s sham contracting and the Labour Inspectorate will take enforcement action and seek penalties” .

In a recent case a Taxi driver was awarded $100,000 in missed wages.

The purpose of this decision was to “send a strong message that employers need to be very clear about the difference between contractors and employees – you can’t remove minimum employment standards if, in essence, you’re treating staff in any way as employees”. 

If you are involved in a contractor arrangement that does not feel right please get in contact.

Insurance ex-CEO claim against dismissal

The latest case is a sign that Employment Law affects all levels of employment hierarchy.  A claim by the ex-CEO of Allianz insurance failed on the basis that there had been a substantial breakdown in underwriting controls and lack of good business judgement.   This follows Allianz  suffering a $32 million loss from a Wellington property affected by the earthquake.    

The case highlights:

a) the need to be represented at any disciplinary meeting;

b) the need to ensure that all decisions makers are free from pre-determination; 

c) that there is no disparity of treatment between employees; 

d) that the decision making processes are reasonable; 

e) the need to apply the statutory test of justification as contained within section 103A of the Act;  and

f) all decisions are made in good faith. 

 The ERA found that there had not been any defect in the process and Allianz was justified in its decision to dismiss Mr ELISARA. 

Exploitation

It is hugely concerning to read about the recent cases of migrant worker abuse. The latest reported case of BBS Horticulture follows similar claims by workers for car dealers, restaurants and farm workers.  

 Indeed MBIE have now got a list of 70 employers who are prohibited from hiring migrant workforce.  Included in that list are large national companies who should know better.  The list also included repeat offenders BBS who have been found to be in breach on 3 separate occasions. The fine of $57,000 should hopefully send the message that these type of abuse cannot continue to occur.  

Employment Law Changes

Employment Law is currently undergoing change.  The latest changes to the Employment Relations Act 2000 focus on establishing minimum employment standards and increasing sanctions.

Employees should be aware of key changes to Paid Parental Leave, the minimum wage, reporting and time recording and the removal of “zero hour” contracts. So, if you are employed and do not have an employment contract, or you think your employer has not updated your employment contract we can help negotiate this process.