Complaints only 'tip of iceberg'

Council of Trade Union president Helen Kelly said the complaints were only "the tip of the iceberg" of the number of law breaches.

Rotorua employees have made more than 30 complaints in the past three years under two pieces of legislation designed to protect workers from being ripped off by their bosses.

But a Rotorua employment lawyer and trade union leader believe far more breaches go unreported.

Ministry of Business, Innovation and Employment data showed Rotorua workers made three complaints under the Wages Protection Act and 33 under the Minimum Wage Act between July 2012 and February this year.

The figures were released to the Rotorua Daily Post under the Official Information Act.

The Wages Protection Act sets out the way wages must be paid, and prevents unlawful deductions from wages.

Wage deductions are only legal in a few circumstances, including if an employee has agreed to or requested the deduction in writing.

The Minimum Wage Act outlines strict requirements for minimum pay. It can also be broken if deductions mean employees end up with less than the hourly minimum for hours worked.

In Rotorua, as nationwide, most complaints were made by workers in the accommodation and food services, agriculture, forestry and fishery industries.

Fraser Wood, of Davys Burton lawyers, said breaches were common - particularly around casual employment.

"It's not uncommon for there to be breaches but it is often uneconomic for the employees to get an employment lawyer to pursue it because the amount involved is usually quite small," he said.

"Part of it is employees don't know their rights and part of it is some employers take advantage of it.

"It probably arises mostly in industries where there's a large casual workforce."

Mr Wood said employers needed to bone up on the laws. "Computer wages packages do a lot of the work for employers.

"It's the employers that don't have the office back up or an accountant doing the work for them that are often ignorant of what they need to comply with."

Nationwide, 1910 complaints were made to the ministry under the Minimum Wage Act between July 2012 and February this year.

A further 733 complaints were made under the Wages Protection Act during the same period.

Council of Trade Union president Helen Kelly said the complaints were only "the tip of the iceberg" of the number of law breaches.

Wage complaints

Rotorua Minimum Wage Act complaints

•Accommodation and food services, 9

•Agriculture, forestry and fishing, 9

•Construction, 5

•Public administration and safety, 1

•Retail, 5

•Transport, postal and warehousing, 2

•Other services, 2

Rotorua Wages Protection Act complaints
•Accommodation and food services, 2
•Agriculture, forestry and fishing, 1
Source: MBIE. From July, 2012 - February, 2015.