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Earthquake no excuse for Kiwi employers

By: Staff Journalist, Singapore
Published: Sep 08, 2010

SALARY

New Zealand - Even if business operations in New Zealand are affected by the recent earthquake, companies still have to pay wages as long as employees are willing to work or they will face charges.

Kiwi employees have the right to complain to the country's Employment Relations Authority (ERA) should their bosses deny them of their salaries. Using the temporary halt in business operations following Saturday's earthquake is not considered as a valid reason to not pay employees. Bridget Smith, senior associate at Minter Ellison Rudd Watt Lawyers, said employers were still obliged to pay their workers even if they were unable to commence normal business operation, reported BBC News. "The guiding principle if you don't have work for your employees to do but they can otherwise come in and do it then they should be paid," Smith said.

Fortunately, the bulk of the employers have been paying their staff, according to Council of Trade Unions secretary Peter Conway. Conway said most of them were still paying out salaries whether their employees could attend work or not. However, Smith encouraged employees to go to ERA if their companies refused to pay them because their businesses were affected by the natural disaster. Employees could argue that they have been "unjustifiably disadvantaged" in terms of salaries or that their employers had cornered them into resignation.

However, Smith said, it would be hard for workers to receive any money at all if an employer closes down the business. To resolve the wage issue, the Department of Labour (DOL) suggested open communication for both parties as a solution. It said, "Where a workplace is affected, employers and employees should seek agreement to what is needed in their unique situation."

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