BREAKING NEWS
Severe earthquake in Christchurch ... Read more
Close

Cafe fined for forcing payment

JESS MCALLEN
Last updated 12:23 05/06/2014

Relevant offers

Small Business

Wellington mum to serve high tea to the rich and famous at Oscars event Wellington's Aro Video saved from closure Christchurch streets 'a tough place for girls in high heels' Hawke's Bay company Giblin Group to expand business in Australia Annual reviews for early stage CEOs – trying not to get in the way Marlborough CBD health check reveals not-so-healthy travel habits 'No hubba-hubba' slogan inventor Hendrix Brown starts Maori language business Wellington Airport runway extension plan backing grows, chamber survey shows Business is sweet for new-look Marlborough honey company Prime Queentown retail spots being snapped up by booking centres

An Auckland cafe director has been ordered to pay more than $14,000 after forcing an employee to give back $200 worth of wages each week for six months.

The Ministry of Business, Innovation and Employment said today that Bin Zhang, of Viz cafe, had breached minimum labour standards.

Zhang told an employee his business wasn't profitable and that weekly cash payments were needed or her work visa could be revoked.

The employee was required to make a total of 17 such payments and the deductions brought her net income to well below the minimum wage.

Labour inspectorate northern region manager, David Milne, said the case served as a clear warning to other employers who breached minimum labour standards.

"The cafe director took advantage of a vulnerable employee through deliberate and calculated breaches of employment laws," Milne said.

The Employment Relations Authority ordered Zhang to pay $6120 in wage arrears and a $5000 penalty for breaching the Wages Protection Act 1983.

The authority said $2000 of the penalty was to be paid to the employee, rather than the Crown and an additional $3000 penalty was ordered for Zhang's failure to comply with an Improvement Notice issues by the Labour Inspectorate.

Ad Feedback

- Stuff

Special offers
Opinion poll

Do you feel better off than at this time last year?

Yes

No

In some areas yes, others no

Vote Result

Featured Promotions

Sponsored Content