Don’t make this $79,000 mistake

Stack of money

Don’t make this $79,000 mistake

In the news this week was a story about an Auckland hotel that has been ordered to pay nearly $79,000 in back wages to a husband and wife couple after the Employment Relations Authority (ERA) found the company had breached the couple’s employment contracts.

Ouch.

The ruling was made because of the employer’s failure to pay wages in accordance with the law and to maintain proper records of that payment.

The company maintains that their payment regime was correct, but the ERA couldn’t verify that because the employer failed to provide actual wage and time records. The ERA described it as “a woeful inadequacy in payroll management”.

Now this is obviously an extreme example and there may well have been more to it than just faulty processes and recordkeeping, but it’s a cautionary tale nonetheless.

Whatever the wider circumstances, presumably things could have been resolved before getting to this stage if the company in question had kept their records in accordance with the law.

The Department of Labour requires that NZ employers keep detailed payroll records for six years. Looking at the list of requirements it may seem like a daunting task.

In reality it shouldn’t be something to lose sleep over and there’s no need to ever find yourself in the same position as the Auckland hotel. With FlexiTime you’ll always have access to your payroll and timesheet records, whether you’re still a user or not. Your data is securely stored and backed up online and you can access it from anywhere you have an internet connection.

If you’re not sure that your current recordkeeping is up to scratch, give FlexiTime a try today for free and see for yourself how easy it is.

Jake Harvey
jake.harvey@flexitime.co.nz

Marketer at FlexiTime.

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