$18k payout for unfair employment agreement! Advocating for fairness in the workplace is at the heart of what we do. Recently, we secured an $18,000 payout for a client in a high-profile case involving an unfair employment agreement. This significant win was featured in the New Zealand Herald, highlighting a landmark moment for employee rights in New Zealand.
This case, centred on a vulnerable teenage worker, sends a clear message to all employees: you have the right to fair treatment under the law. It also reminds employers of the serious consequences of pressuring workers into unlawful agreements.
The $18k Payout: A Victory for Fairness
Our client, a 16-year-old worker, was unfairly pressured into signing an employment agreement that failed to meet basic legal standards. This agreement denied the worker essential rights, such as guaranteed breaks, and imposed unreasonable terms. When she refused to sign without changes being made, she and her father were subjected to abuse and threatening behaviour from the owner of the resturant.
After Sacked Kiwi brought the issue to the Employment Relations Authority (ERA), the employer was ordered to make an $18,000 payout to compensate for emotional harm and unpaid entitlements. This payout represents a critical victory for the individual involved and for all workers who might face similar situations. The Authority found that the employer’s behaviour constructively dismissed our client and that the restaurant’s actions breached its obligations.
This case illustrates the importance of holding employers accountable when they fail to uphold New Zealand’s employment laws.
Why Understanding Employment Agreements Matters
For employees, especially those new to the workforce, understanding the terms of your employment agreement is essential. Agreements must comply with the Employment Relations Act 2000, which outlines your basic rights as a worker in New Zealand.
Here are some key elements every employment agreement must include:
- Guaranteed rest and meal breaks.
- A clear outline of wages and entitlements.
- Details about working conditions and termination processes.
- Compliance with minimum legal standards, including the minimum wage.
If your agreement omits or violates any of these requirements, it’s worth seeking advice to protect your rights. To learn more about your employment rights, check out our learning hub.
Our Commitment to Employees
In this case, we stood by the worker from the beginning, providing the legal support they needed to fight against unfair treatment. Advocacy for employees is a cornerstone of our practice, and we’re proud to have helped secure this important outcome.
Whether you’re dealing with an unfair employment agreement, workplace disputes, or concerns about your rights, our team is here to help. No one should feel alone when facing these challenges.
What This Win Means for Employees
This $18k payout is more than just a financial win—it’s a statement. It reinforces that workers, regardless of their age or experience, are entitled to fair treatment and legal protections. Employers who fail to uphold these standards risk significant financial and reputational consequences.
For employees, this case is an empowering reminder: your rights matter, and there are systems in place to ensure justice is served.
For the full story, check out the original article in the New Zealand Herald.
