A Napier developer’s year-long bid to overturn a $96,000 penalty for several breaches involving 14 workers, including illegal employment agreements, has failed in the Employment Court.
The Employment Relations Authority (ERA) ruled in July last year that construction company MAH Enterprises must pay a penalty of $64,000 and its sole director Malcolm Herbert must pay a penalty of $32,000.
The ruling followed a Labour Inspectorate investigation alleging Herbert and MAH had committed 42 breaches of employment law involving 10 migrant workers and four Kiwi employees.
Breaches included a failure to keep wages and time records, holiday and leave records; a failure to provide annual holiday entitlement; and providing illegal employment agreements.
Half of the penalties paid were to go to the 14 workers.
ERA member Sarah Kennedy-Martin said at the hearing the inspector had been unable to investigate properly because Herbert and the company had “consistently” failed to provide all the required information.
“Despite repeated attempts to engage with Mr Herbert to obtain the material required to complete her (the inspector’s) investigation, Mr Herbert either did not respond, sought extended deadlines that he also did not meet and then, when he provided information, it was not complete.”
No evidence or legal submissions were produced to support a defence, a statement from MBIE this morning said.
Herbert claimed he couldn’t file submissions because of floods in Napier during Cyclone Gabrielle and on another occasion due to a burglary.
Labour Inspectorate southern region compliance manager Brendon Strieker said Herbert and his company had repeatedly attempted to delay proceedings.
“It is pleasing that these stalling tactics have not been successful. Hopefully, these vulnerable workers will now receive some compensation for what they have been through.
“The Inspectorate views exploitation as among the most serious breaches of employment standards.
“Our inspectors will continue to seek out non-compliance with minimum employment standards and take appropriate enforcement action where exploitation of vulnerable workers is identified.”
