Heavy fines for lack of employment records

Employers must keep complete and accurate records of their employees to avoid severe fines. Remain compliant with the Employment Relations Act 2000 and the Holidays Act 2003 and follow the checklist given below.

As an employer you must:

  • Be able to show you have paid your employees all minimum employment entitlements like the minimum wage rate and four weeks’ annual holidays
  • Keep records with the name, age, address, and date employees started working, what their job entails, public holiday payments and tax declarations
  • Keep records for seven years even if they have left
  • Ensure all employees have complete and current employment contracts

Penalties
Employers who fail to follow these record-keeping requirements are liable for severe financial penalties. Individuals found in breach of this requirement could be fined up to $50,000, and companies up to $100,000 or three times the amount of the financial gain made. Labour inspectors can also issue an infringement notice for breach of the record-keeping requirements.

Posted on 7 December '18 by , under tax.