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Penalties for Employers Breaching Minimum Standards are more serious than ever

With tougher sanctions and penalties of up to $20,000 for each breach imposed on business owners, employers need to be confident they are meeting their minimum statutory obligations. In 2017 we have seen significant sanctions on employers and it seems every week the newspapers name and shame employers who have breached minimum standards. Penalties can […]

Employer KiwiSaver contribution cannot take employee below minimum wage

Court of Appeal confirms the Employment Court’s position Employers can agree with employees that they will pay KiwiSaver contributions on a “total remuneration” approach whereby their wages are inclusive of the employer’s contribution. However, there is an important exception to that rule, and that is when the gross wages after such contributions are made are less that the statutory […]

Employer’s KiwiSaver contributions could not be deducted from minimum wage

The Court of Appeal has dismissed an appeal from an aged care provider that sought to deduct KiwiSaver compulsory employer contributions from the minimum wages it paid its caregivers. The Employment Court had found that it could not do so (Faitala v TerraNova Homes & Care Ltd (2012) 10 NZELC; [2012] NZEmpC 199) and its […]

KiwiSaver employer contributions

With the recent increase in the minimum rate of KiwiSaver contributions rising to 3% for both employees and employers, it is timely to examine the implications of KiwiSaver from both a financial and legal perspective. For employers, there are two approaches to calculating minimum employer contributions to KiwiSaver: the “default” approach and the “total remuneration” […]

Important Payroll Changes 1 April 2013

For the pay period beginning 1 April 2013 or after, there are some important payroll changes employers need to be aware of. These changes are summarised below: The minimum KiwiSaver contribution (employee and employer) increases from 2% to 3%. Minimum Student Loan repayments increase from 10% to 12% for earnings over and above the repayment threshold (currently […]

Recent Case: Remedy for failure to pay KiwiSaver contributions

Compensation for the loss of the benefit of an employer’s contribution to an employee’s KiwiSaver account can be claimed but the Employment Relations Authority does not have jurisdiction to order an employer to make KiwiSaver contributions to an employee’s fund. That being the case, when an employer fails to make the required KiwiSaver contribution, employees […]

Employers’ KiwiSaver contributions must be paid in addition to minimum wage

Faitala v Terranova Homes & Care Ltd A full court of the Employment Court has held that the employer of any employee on the minimum wage must pay the KiwiSaver employer contribution in addition to the minimum wage or, if the parties agree to what is commonly called a “total remuneration” approach, the gross wage […]