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The cost of the minimum wage

Minimum wage earners Vasivasi Faitala and Dalrene Goff argued it was unfair they had to pay their own and their employer TerraNova's KiwiSaver contributions.

The caregivers earn the minimum wage of $13.50 an hour, which was broken down to wages and tax of $12.98, 26c for their contribution to KiwiSaver, hong kong company register and 26c for TerraNova's contribution.

The Court of Appeal agreed with the Employment Court that the Minimum Wage Act was designed to impose a floor below which employers and employees could not go.

TerraNova argued it was entitled to make the deduction when minimum wage and KiwiSaver laws were read together, registration of company in Hong Kong and that the Employment Court erred in concluding that compulsory employer contributions were not wages.

"The opening phrase used in section six of the Minimum Wage Act notwithstanding anything to the contrary is an unequivocal statement of legislative intent that the provision shall prevail over any enactment, award, collective agreement, determination or contract of service which purports to limit the workers entitlement to the prescribed minimum wage Business Registry Hong Kong," the Court of Appeal said.

TerraNova has to pay 75 per cent of the costs for a standard appeal.
  1. 2013/09/21(土) 11:31:04|
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