Employee Status Error costs Canterbury Student Association $15k

The University of Canterbury Students Association has been asked to repay employees after it breached their holiday pay entitlements.

The students association (UCSA) was issued with an improvement notice after receiving a complaint from a former employee who claimed he had not received the correct entitlements for annual leave and sick leave.

A Labour Inspectorate investigation found at least 14 UCSA employees were not receiving their holiday and sick leave entitlements because they were described by the association as “casual” but were found to be part-timers.

The inspectorate is part of the Ministry of Business, Innovation and Employment (MBIE), which on Wednesday reminded employers that part-time employees who work regular rostered hours are entitled to pro-rated holidays and leave.

The inspectorate regularly saw cases where people working part-time were not getting their legal entitlements because the employer assumed they could just pay 8 per cent on top of their usual pay to cover off their holiday entitlements, Labour Inspectorate southern regional manager Stuart Lumsden said.

“Employers need to remember that it is only acceptable and lawful to add eight per cent of the employee’s gross earnings as annual holiday pay to their regular pay packets for employees who are on a fixed term contract or who work irregularly or intermittently – for instance on-call workers,” Lumsden said.

“In all other cases the four weeks’ pro-rated rule applies.”

Read the full article here – http://www.stuff.co.nz/business/better-business/69260912/students-association-breaches-pay-entitlements

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