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South Waikato Farmer Ordered To Pay $30,000 For Employment Breaches

Posted on January 22, 2025




Wednesday, 22 January 2025, 2:02 pm
Press Launch: Ministry of Enterprise Innovation and Employment

The Employment Relations Authority (ERA) has ordered a
South Waikato farmer and his dairy farming enterprise to pay
penalties of $30,000 for breach of employment requirements
referring to 4 staff.

The order by ERA Member
Shane Kinley, follows a Labour Inspectorate investigation in
February 2022 at a farm owned by H&S Chisholm Farms
Restricted within the Putaruru space.

In the course of the
investigation, the Labour Inspector discovered 34 breaches of
employment requirements on the farm and the proprietor Hugh Chisholm
was concerned in committing the breaches.

Because of this
Mr Kinley ordered H & S Chisholm Farms Ltd to pay a
penalty of $20,000 and Hugh Chisholm a penalty of
$10,000.

Breaches discovered included:

  • Minimal
    wages not paid.
  • Vacation entitlements not
    supplied.
  • Failure to correctly pay for work on public
    holidays.
  • Failure to supply sick
    depart.
  • Insufficient recordkeeping.
  • Deductions
    from wages made with out consent from
    staff.

Following an settlement between the
Labour Inspectorate, H & S Chisholm Farms Ltd and Hugh
Chisholm, arrears of $13,992 had been paid to the 4 staff
affected by the breaches.

In his ruling Mr Kinley mentioned
the Labour Inspector had submitted that the respondents
“incomplete and inconsistent method to record-keeping
had undermined their capacity to successfully implement
employment requirements and positioned staff at a
drawback.

“Whereas funds of arrears have now
been made, this occurred someday after the matter was
lodged with the Authority, with the affected staff
dropping the usage of the cash on the time it was resulting from
them.”

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Labour Inspectorate Head Simon Humphries mentioned
whereas the farm and its proprietor had co-operated with the Labour
Inspector and agreed to pay the arrears owed to the
staff it was nonetheless unacceptable and disturbing
that that they had allowed the breaches to occur within the first
place.

“Employers have an obligation to do proper by
their staff. Too typically our Labour Inspectors discover
employers are chopping corners or just ignoring their ethical
and authorized obligations to deal with their employees with respect
and in response to the regulation.

“The Labour Inspectorate
won’t hesitate to behave towards employers who don’t abide
by minimal employment requirements. However we’re all the time keen
to assist and educate employers who need to do the suitable factor
however are unsure about their employment relations
tasks,” Mr Humphries mentioned.

“This
firm supplied milk to Fonterra. At the moment, Fonterra
didn’t have a social observe audit, however we perceive that
they’ve adopted Office 360 from 2024-2025. Circumstances like
this present the necessity for these audit processes to be sturdy in
phrases of employee welfare. We hope to see fewer instances within the
future as these audit processes evolve.”

  • MBIE
    encourages anybody who thinks they or another person has been
    handled unfairly within the office to contact our 0800 20 90
    20 contact centre quantity the place their considerations might be
    dealt with in a protected
    atmosphere.

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