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Sandhu v Gate Gourmet New Zealand Limited [2021] NZCA 591 (11 November 2021)
Last Updated: 16 November 2021
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IN THE COURT OF APPEAL OF NEW
ZEALANDI
TE KŌTI PĪRA O AOTEAROA
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BETWEEN
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SUHKJEET SANDHU First Appellant
HUIPING WU Second
Appellant
SELLIAH NESUM NIRANJALA Third Appellant
ROSALINA
LEANNA Fourth Appellant
SUTHARSHINI ANTHONY RUPS MIRANDA Fifth
Appellant
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AND
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GATE GOURMET NEW ZEALAND LIMITED First Respondent
SHAUN
JOILS Second Respondent
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Hearing:
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21 October 2021
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Court:
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French, Gilbert and Goddard JJ
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Counsel:
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P Cranney for Appellants E J Butcher for Respondents
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Judgment:
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11 November 2021 at 11.00 am
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JUDGMENT OF THE COURT
- The
appeal is allowed.
- We
answer the approved question of law as follows:
It is not
lawful to make deductions from wages for lost time not worked at the
employer’s direction. The minimum wage is payable
for the hours of work
that a worker has agreed to perform, but does not perform because of such
a direction.
- The
orders made in the Employment Court are set aside, and the determination of the
Employment Relations Authority is restored.
- The
proceeding is referred back to the Employment Relations Authority to determine
any outstanding matters in light of the decision
of this Court.
- The
first respondent must pay the appellants the usual disbursements in respect of
the appeal to this Court.
- Costs
before the Employment Court are to be determined by that Court in light of the
outcome before this
Court.
____________________________________________________________________
REASONS OF THE COURT
(Given by Goddard J)
- [1] The Minimum
Wage Act 1983 provides that certain employees are entitled to be paid for their
work at not less than the prescribed
minimum rate. Does this protection apply
only in respect of time actually worked by an employee? Or does it also
apply in respect
of hours that the employee has agreed to work, and is available
to work, but does not work at the direction of their employer?
- [2] The answer
to this question is of particular significance in the context of the current
COVID-19 pandemic. Many employers have
been unable to operate their businesses
in the normal way. Some have been required to close their premises. Others,
though able
to open, have suffered a downturn in business which means there is
no work for their employees to do.
- [3] Read in
isolation, s 6 of the Minimum Wage Act is open to either interpretation.
But when it is read in context, the answer is
in our view clear. Section
7(2) of the Minimum Wage Act provides that no deduction in respect of time lost
by any employee may be
made from the wages payable to the employee under the
Act, except for time lost by reason of the default of the worker, or by reason
of the worker’s illness or of any accident suffered by the worker. If
s 6 only applied to hours actually worked, s 7(2) would
serve no
function: where time was “lost”, the minimum wage would not be
payable, and no question of deductions from that
wage could arise. The only
reading of s 6 that fits with the wider scheme of the Act, and in
particular s 7(2), is that the minimum
payment prescribed by s 6 applies to
all hours that an employee has agreed to work, whether or not those hours are
actually worked.
If agreed hours are not worked — that is, if time is
lost — the Act permits deductions from the minimum wage prescribed
by
s 6 if and only if that time is lost for one of the reasons specified in
s 7(2).
- [4] It follows
that we agree with the conclusion reached by the Employment Relations
Authority,[1]
and by Chief Judge Inglis (dissenting) in the Employment
Court.[2]
The appeal must be allowed.
- [5] Our reasons
are set out in more detail below.
The Minimum Wage Act
- [6] We begin by
setting out in full ss 6 and 7 of the Minimum Wage Act, which are at the
heart of this appeal:
6 Payment of minimum wages
Notwithstanding anything to the contrary in any enactment, award, collective
agreement, determination, or contract of service, but
subject to sections 7 to
9, every worker who belongs to a class of workers in respect of whom a minimum
rate of wages has been prescribed
under this Act, shall be entitled to receive
from his employer payment for his work at not less than that minimum rate.
7 Deductions for board or lodging or time lost
(1) In any case where a worker is provided with board or lodging by his
employer, the deduction in respect thereof by the employer
shall not exceed such
amount as will reduce the worker’s wage calculated at the appropriate
minimum rate by more than the cash
value thereof as fixed by or under any Act,
determination, or agreement relating to the worker’s employment, or, if it
is not
so fixed, the deduction in respect thereof by the employer shall not
exceed such amount as will reduce the worker’s wages (as
so calculated) by
more than 15% for board or by more than 5% for lodging.
(2) No deduction in respect of time lost by any worker shall be made from
the wages payable to the worker under this Act except for
time lost—
(a) by reason of the default of the worker; or
(b) by reason of the worker’s illness or of any accident suffered by
the worker.
- [7] Sections
6 and 7(2) are in essentially the same terms as s 2(1) and (5) of the
Minimum Wage Act 1945, which read as follows:
2. (1)
Notwithstanding anything to the contrary in any enactment, award, industrial
agreement, or contract of service, every worker
of the age of twenty‑one
years and upwards to whom this Act applies shall be entitled to receive from his
employer payment
for his work at not less than the appropriate minimum rate
prescribed under this section.
...
(5) No deduction in respect of time lost by any worker shall be made from
the wages payable to him under this section except for
time lost by reason of
the default of the worker, or by reason of his illness or of any accident
suffered by him.
- [8] Those
provisions in turn are based on s 14(1) and (5) of the Agricultural Workers
Act 1936. Similar provisions were also found
in many Awards from the early 20th
century onwards.
- [9] The Minimum
Wage Acts of 1945 and 1983 give effect to New Zealand’s international
obligations under the Minimum Wage-Fixing
Machinery Convention
1928.[3] Under that Convention New
Zealand is required to create and maintain machinery enabling minimum rates of
wages to be fixed for workers
in sectors “in which no arrangements
exist for the effective regulation of wages by collective agreement or otherwise
and wages
are exceptionally
low”.[4] The Convention
provides that minimum rates of wages which have been fixed are binding on the
employers and workers concerned “so
as not to be subject to abatement by
them by individual agreement, nor, except with general or particular
authorisation of the competent
authority, by collective
agreement”.[5]
- [10] The
Minimum Wage Act was described by a Full Court of the Employment Court in
Faitala v Terranova Homes & Care Ltd
as:[6]
...
a statute of fundamental importance in the sphere of employment law in New
Zealand. It is a statute that is designed to impose
a floor below which
employers and employees cannot go. It is directed at preventing the
exploitation of workers, and is a statutory
recognition of the diminished
bargaining power of those in low paid employment.
- [11] On appeal,
this Court endorsed that description of the
Act.[7]
The
background to these proceedings
- [12] An agreed
statement of relevant facts was filed in the Authority. The parties differ in
their interpretation of that agreed
statement of facts, and each party sought to
place certain glosses on that statement of facts in the course of argument
before us.
Ultimately, the parties agreed that this appeal should be determined
by reference to the “key facts” set out in paragraphs
[9]–[21]
of the Employment Court decision. The background set out below is based on
those paragraphs.
The parties
- [13] Gate
Gourmet New Zealand Ltd (Gate) provides inflight catering services to passenger
aircraft. In March 2020 it had over 130
employees, including the five
appellants (the employees). The employees are all members of the Aviation
Workers United Inc Union
(AWU). The second respondent, Mr Joils, is the General
Manager of Gate.[8]
The
employees’ employment agreements
- [14] Each of the
employees’ employment agreements provides for full-time employment for a
minimum 40-hour week. They are paid
weekly. Prior to 30 March 2020
they were paid $17.70 per hour, which was the applicable minimum hourly wage.
On 1 April 2020 the
minimum hourly wage increased to $18.90 per hour: it is now
common ground that this rate applies to the
employees.[9]
COVID-19
impact on Gate’s business
- [15] The
COVID-19 pandemic led to a number of restrictions being imposed in New Zealand
in March 2020. International travel was severely
restricted.
The Government imposed a COVID-19 Alert Level 4 “lockdown” with
effect from 26 March 2020. The lockdown
prevented most domestic air travel
within New Zealand. The Director-General of Health made an order requiring
all premises to be
closed, unless they came within certain exceptions. The
exceptions included premises where essential services were performed. Gate
was
an essential service for this purpose, so was permitted to remain open for
business throughout the lockdown. However Gate had
very little work to offer
employees, as there was almost no demand for inflight catering
services.
Gate responds to the impact of COVID-19
- [16] Following
the imposition of the Level 4 lockdown Gate advised its employees and the unions
representing them (including AWU)
that, as a result of having very little work
to offer employees, it would need to partially shut down operations.
- [17] On 26 March
2020, Gate proposed to its employees:
(a) the implementation of a
partial close-down;
(b) employees being paid 80 per cent of their normal pay, conditional on Gate
receiving the Government wage subsidy; and
(c) employees could choose to use their annual leave entitlement to
supplement the 80 per cent of normal pay being offered, meaning
that an employee
could receive 100 per cent of their pay by using one day of their annual leave
per week.
- [18] On 26 March
2020, Gate confirmed to its employees and to AWU that, if an employee had not
been rostered on, and Gate had not
asked them to come to work, that meant Gate
had no work for them and they should stay at home. On the same day Gate applied
for
the Government wage subsidy for 132 employees.
- [19] On 27 March
2020, Gate emailed all employees with a notice of close-down. In that notice
Gate stated:
(a) It was an essential service and was able to keep
operating.
(b) It was closing down part of its business.
(c) It was presenting a written offer setting out the three options that it
was offering employees, namely:
(i) Option one — employees take all entitled annual leave until it is
exhausted, at which point the employee could move to option
two.
(ii) Option two — conditional on Gate receiving the wage subsidy, it
would pay the employee at the rate of at least 80 per cent
of their normal
pay.
(iii) Option three — conditional on Gate receiving the wage subsidy, it
would pay the employee at the rate of at least 80 per
cent of their normal pay,
and the employee could then use their annual leave entitlement to supplement
their income in order that
they receive 100 per cent of their normal pay.
- [20] On 27 March
2020 AWU, on behalf of its members (including the employees) rejected option one
and agreed to options two and three,
subject to Gate complying with all
applicable legislation.
- [21] The
employees have not worked much since the partial close-down of Gate’s
operations. One of them did some shift work
at the beginning of Alert Level 4,
and has worked since 28 April 2020.
The proceedings
- [22] In April
2020 the employees, through AWU, filed a statement of problem with the Authority
alleging that Gate had taken unilateral
action in relation to employees and
their terms and conditions of employment, and had failed to properly consult
with AWU about the
proposed changes. The employees also claimed Gate had acted
unlawfully in paying them less than the minimum wage of $756 per week.
The employees sought penalties against Gate and Mr Joils, a declaration
that Gate acted unlawfully in paying them less than the
minimum wage, and
compliance orders under s 137 of the Employment Relations Act
2000.
Authority’s determination
- [23] The
Authority’s determination recorded that there was a difference of views
between the parties about whether AWU on behalf
of its members had agreed to
Gate’s proposed 80 per cent payment. However the Authority member
considered that he did not
have to reach a view on that issue, because it is not
open to parties to contract out of the Minimum Wage Act. The issue that he
needed to decide was whether that Act
applied.[10]
- [24] The
Authority found that the employees were ready, willing and able to
work.[11] The decision about
whether or not they would work was made by Gate, not by the
employees.[12] The employees were
not working at the direction of Gate. In these circumstances, the Authority
found that s 6 of the Minimum Wage
Act applied. By paying the employees 80
per cent of their wages, Gate had breached the
Act.[13]
- [25] The
Authority declined to impose a penalty on either Gate or Mr Joils.
They had not acted in bad faith. The parties had found
themselves in a
difficult and complex situation as a result of the pandemic. A penalty was not
appropriate.[14]
- [26] The
Authority made orders that to the extent that Gate had not paid the employees at
the minimum wage for 40 hours per week,
it was required to do so
forthwith.[15]
- [27] The
argument before the Authority appears to have focused exclusively on s 6 of
the Minimum Wage Act. There is no reference
to s 7(2) in the
Authority’s determination. We understand from counsel that s 7(2)
was not referred to by either party before
the
Authority.
Employment Court decision
- [28] Gate and Mr
Joils challenged the Authority’s Determination before the Employment
Court. The challenge was not brought
on a de novo
basis.[16] As the Employment Court
observed, that meant the matters for the Court were significantly more limited
than those that were before
the Authority. The challenge proceeded on the basis
of the facts as stated in the Authority’s determination. The issue before
the Court concerned the interpretation of the Minimum Wage Act, and its
application to the employees at times when they were performing
no work for
Gate.[17]
- [29] We
understand from counsel that the argument before the Employment Court initially
focussed on s 6 of the Minimum Wage Act, without
reference to s 7(2).
However following the hearing the Court sought and received further submissions
on the implications of s 7(2)
for the question before the
Court.[18]
- [30] Judge
Holden and Judge Beck, in the majority, found that when the employees stayed
home, they were not working for the purposes
of s 6 of the Minimum Wage
Act. So the Minimum Wage Act was not engaged, and no statutory minimum wage
entitlements arose.[19]
- [31] The
majority acknowledged that the relationship between ss 6 and 7(2) is not
straightforward. However they concluded that it
is only if wages are due under
s 6 that the question of whether s 7 entitles the employer to make a
deduction arises.[20]
It followed that s 7(2) was not engaged in the present case. Gate was
not making deductions from wages otherwise due under the
Minimum Wage Act, as
s 6 did not require wages to be paid in circumstances where the employee
was not working.[21]
- [32] Chief Judge
Inglis dissented. She considered that when ss 6 and 7 are read together,
the payment of minimum wages “is
inviolable subject to very limited
exceptions”.[22] Deductions
for time lost are permitted only in the circumstances set out in s 7. The
approach to “payment for work”
contended for by Gate could not be
correct, as it would make the restrictions in s 7(2) redundant. In the
present case, the reason
why the employees could not work the contracted 40
hours had nothing to do with their default, illness or accident: so no deduction
could be made from the minimum wage they would otherwise be entitled to
receive.[23] The Chief Judge would
have held that, having regard to the agreed statement of facts, there was a
breach of the Minimum Wage Act,
and would have dismissed the challenge on that
basis.[24]
Leave to
appeal
- [33] The
employees sought leave from this Court to appeal from the
Employment Court’s
decision.[25] This Court granted
leave to appeal on the following question of
law:[26]
Whether,
in the absence of sickness, default, or accident, the minimum wage is payable
for all of a worker’s agreed contracted
hours of work or whether it is
lawful to make deductions from wages for lost time not worked at the
employer’s direction.
The parties’ submissions on appeal
- [34] Before this
Court Mr Cranney, counsel for the employees, submitted that the approach of the
Chief Judge of the Employment Court
should be preferred.
Her interpretation of s 6 was consistent with the statutory context,
in particular s 7(2), and with the purpose
of the legislation as summarised
in the passage from the Employment Court decision in Faitala set out at
[10[27]
above.27
- [35] Mr Cranney
submitted that the Chief Judge’s approach is also consistent with common
law principles in relation to the obligation
of an employer to pay an employee
for their agreed hours of work, provided that the employee is ready, willing and
able to work.
A failure by the employer to provide work did not excuse the
employer from payment as a matter of common law. Nor, Mr Cranney submitted,
should it excuse an employer from the obligation to pay the minimum wage
provided for in s 6 of the Minimum Wage Act.
- [36] Ms Butcher,
counsel for the respondents, supported the approach of the Employment Court
majority. She referred us to previous
decisions of this Court which have
described s 6 as requiring payment for “actual performance of [the
employee’s] services”,
and for “time actually
worked”.[28]
- [37] Ms Butcher
submitted that the interests of workers who are ready, willing and able to work,
but who are not provided with work
by their employer, are protected by the
provisions of their employment contract, statutory support for such contracts
under the Employment
Relations Act, and other legislation that forms part of the
“minimum code” of employment rights in New Zealand including
the Holidays Act 2003.
- [38] Ms Butcher
emphasised that on the approach contended for by the employees, in circumstances
where there was no work available
for the employee to perform it would be open
to an employer and employee to agree to reduce the employee’s contracted
hours
of work by 20 per cent, but not to agree to reduce the employee’s
agreed weekly remuneration by 20 per cent. Different results
should
not be reached based on a “legal fiction”.
- [39] Ms Butcher
also cautioned against adopting an interpretation of the Minimum Wage Act
that would prevent an employer and an employee
agreeing that the employee would
take leave without pay in circumstances where, through no fault of their own,
the employer could
not provide work. Arrangements of this kind, she emphasised,
have the significant benefit for both parties of preserving the employment
relationship until the position changes and there is work available for the
employee.
Discussion
- [40] The
meaning of an enactment must be ascertained from its text and in the light of
its purpose.[29] As the Supreme
Court observed in Commerce Commission v Fonterra Co-operative Group
Ltd:[30]
[22] It is
necessary to bear in mind that s 5 of the Interpretation Act 1999 makes text and
purpose the key drivers of statutory interpretation.
The meaning of an
enactment must be ascertained from its text and in the light of its purpose.
Even if the meaning of the text
may appear plain in isolation of purpose, that
meaning should always be cross-checked against purpose in order to observe the
dual
requirements of s 5. In determining purpose the Court must obviously have
regard to both the immediate and the general legislative
context. Of relevance
too may be the social, commercial or other objective of the enactment.
- [41] In that
case, the Supreme Court was required to determine whether a reference in a
provision to Fonterra’s “cost
of capital” was a reference to
Fonterra’s weighted average cost of capital, or to that company’s
cost of equity
capital. If the relevant provision was read in isolation, either
meaning was open. In those circumstances, context and purpose
were
“essential guides to
meaning”.[31] And once
legislative context and purpose were taken into account, it would be illogical
if the reference to “cost of capital”
referred to capital other than
equity capital.[32]
- [42] This case
raises a similar issue, albeit in a very different context. If s 6 of the
Minimum Wage Act is read in isolation, the
reference to “payment for his
work” could plausibly be read either as a reference to work actually
performed by the employee,
or as a reference to work that the employee has
agreed to perform under their contract of employment, whether or not it is
actually
performed. Indeed the former might appear to be the more natural of
the two readings.
- [43] However as
the Supreme Court emphasised in Fonterra, the text of a provision
must be read in the light of its immediate legislative context. Put another
way, the section of an Act
under consideration must be read in the light of the
Act as a whole.[33] Sections 6 and
7 of the Minimum Wage Act form part of a coherent scheme. They must be
read together, in a way that makes sense
of that
scheme.[34]
- [44] Section
7(2) is concerned with “time lost”: that is, time that was agreed to
be worked, but is not in fact worked.
It identifies the circumstances in which
a deduction may be made from the minimum wage payable under s 6 for time
lost. Outside
those prescribed circumstances, deductions for time lost are not
permitted: the minimum wage prescribed by s 6 must be paid.
- [45] If s 6 only
applied to time actually worked, s 7(2) would be superfluous.
It would make no sense to include such a provision
in the statute. Time
lost would not be time worked, so the minimum wage would not be payable in
respect of that time. No question
of deduction in respect of that time would
arise.
- [46] The only
logical reading of s 6, in the context of the Act as a whole, is that it
requires payment of the minimum wage for the
whole of the time that the employee
has agreed to work. If the employee does not work for some of that time —
if time is “lost”
— then s 7(2) prescribes the consequences
and sets out the only circumstances in which payment of wages may be withheld in
respect of that time.
- [47] This
reading of s 6 is also consistent with the purpose of the Act.
As already mentioned, it sets a floor below which employers
and employees
cannot go: they cannot contract out of this basic protection. The Act is
directed at preventing the exploitation of
workers. It recognises the
diminished bargaining power of those in low-paid
employment.[35] It would be
inconsistent with the purpose of the Minimum Wage Act, and the protections
it seeks to provide for low-paid employees,
if s 6 could be unilaterally
disapplied by an employer simply by directing that the employee not attend
work.
- [48] Ms Butcher
is of course right to say that there are other protections available to
employees. The minimum code of employment
rights in New Zealand today goes well
beyond the limited protections that were in place in 1945 when the first
Minimum Wage Act was
enacted, or even for that matter in 1983 when the
current Act was enacted. But the Minimum Wage Act continues to play a
fundamental
part in the scheme of protections available to employees. There is
no warrant for treating s 7(2) as superseded by subsequent legislation.
It
is even more difficult to see how the meaning of the phrase “payment for
his work” in s 6 could have changed since
1983 as a result of the
developments to which Ms Butcher referred us. Read in context in 1983, s 6
clearly referred to time that
was agreed to be worked, whether or not that time
was actually worked. There is no reason to read the provision differently
today.
- [49] For
completeness, we add that we do not consider that this Court’s reference
in Faitala to an employee’s right “to receive a fixed amount
periodically payable for actual performance of his or her services”
sheds
any light on the issue before
us.[36] The question of
entitlement to payment for time lost was not before the Court in that case. No
reference was made to s 7(2). Rather,
the focus was on what tasks or
services amounted to “work” for the purposes of s 6. Likewise,
the question of payment
for time lost was not before this Court in
Karelrybflot v Udovenko, where reference was made to payment of the
minimum rate “only for time actually
worked”.[37] Read in context,
neither decision provides any support for the respondents’ position.
- [50] It follows
that an employer cannot reduce the amount that an employee will be paid below
the minimum wage payable under s 6 for
time that the employee has agreed to
work, but has not worked, if the reason the employee did not work is that the
employer had no
work for them to perform and directed them not to come to work.
Nor can an employer and an employee enter into an agreement to that
effect:
s 6 applies “[n]otwithstanding anything to the contrary in any ...
contract of service”.
- [51] We accept
Ms Butcher’s submission that an employee can agree with their employer to
take leave without pay, or to reduce
the agreed hours to be worked.
If agreement is reached to take leave without pay, the Minimum Wage Act
does not require any payment
during the agreed period of leave. If an agreement
is reached to reduce working hours, the Act applies only to the reduced hours
of
work.
- [52] We do not
see this difference in outcome as based on a technical distinction, let alone a
“legal fiction”. Where
for example an employee agrees with their
employer that they will take leave without pay, the employer cannot unilaterally
revoke
that leave and require the employee to work. The employee can plan on
the basis that they are not required for work during the agreed
period of leave.
They might for example take on alternative work, or undertake study, or travel
away from their place of work secure
in the knowledge that they are not required
to attend work. But as we understand the agreed facts, that was not the
arrangement
here. It was open to Gate to roster employees on during their
normal hours of work, and they would then be required to work. The
employees
were not at liberty to engage in other activities that would prevent them
working if called on to do
so.[38]
Our answer to
the approved question of law
- [53] We set out
again, for ease of reference, the question of law on which leave was
granted:[39]
Whether, in
the absence of sickness, default, or accident, the minimum wage is payable for
all of a worker’s agreed contracted
hours of work or whether it is lawful
to make deductions from wages for lost time not worked at the employer’s
direction.
- [54] We answer
that question as follows:
It is not lawful to make deductions from
wages for lost time not worked at the employer’s direction. The minimum
wage is payable
for the hours of work that a worker has agreed to perform,
but does not perform because of such a direction.
- [55] The agreed
statement of facts does not record the existence of any agreement between the
parties that would justify not paying
the employees the minimum wage. More
specifically, there is no reference to an agreement to take leave without pay.
But it is not
the function of this Court, on an appeal on a question of
law, to determine any factual disputes that may remain unresolved between
the
parties. Rather, any remaining issues of that kind can be resolved before the
Authority or the Employment Court, as appropriate.
- [56] In light of
our answer to the approved question of law, the appeal must be allowed. The
decision of the Employment Court will
be set aside, and the determination of the
Authority restored.
Costs
- [57] The
employees do not seek an award of legal costs in this Court, as Mr Cranney
represented them pro bono. They do seek an award
of disbursements. That is
plainly appropriate.
- [58] We
understand from counsel that costs were awarded to the employees in the
Authority, and have been paid. No order has been
made in the
Employment Court in respect of costs in that Court, pending the outcome of
this appeal. Costs in that Court will need
to be determined by that Court in
light of the outcome before this Court, if they cannot be agreed by the
parties.
Result
- [59] The appeal
is allowed.
- [60] We answer
the approved question of law as follows:
It is not lawful to make
deductions from wages for lost time not worked at the employer’s
direction. The minimum wage is payable
for the hours of work that a worker has
agreed to perform, but does not perform because of such a direction.
- [61] The orders
made in the Employment Court are set aside, and the determination of the
Authority is restored.
- [62] The
proceeding is referred back to the Authority to determine any outstanding
matters in light of the decision of this Court.
- [63] The first
respondent must pay the appellants the usual disbursements in respect of the
appeal to this Court.
- [64] Costs
before the Employment Court are to be determined by that Court in light of the
outcome before this Court.
Solicitors:
Oakley Moran, Wellington
for Appellants
BE Employment Law, Auckland for Respondents
[1] Sandhu v Gate Gourmet New
Zealand Ltd [2020] NZERA 259 [Authority determination].
[2] Gate Gourmet New Zealand
Ltd v Sandhu [2020] NZEmpC 237 [Employment Court decision] at
[49]–[71].
[3] Convention Concerning the
Creation of Minimum Wage-Fixing Machinery (ILO No 26) 39 UNTS 3 (adopted 16
June 1928, entered into force 14 June 1930). It was ratified by New Zealand on
29 March 1938.
[4] Article 1(1).
[5] Article 3(2)(iii).
[6] Faitala v Terranova Homes
& Care Ltd [2012] NZEmpC 199, [2012] ERNZ 614 [Faitala (EC)] at
[39].
[7] Terranova Homes and Care
Ltd v Faitala [2013] NZCA 435, [2013] ERNZ 347 [Faitala (CA)] at
[28].
[8] The appeal does not raise any
issues in relation to the position of Mr Joils personally. The claim against
him for a penalty before
the Authority was dismissed, and there was no appeal
from that decision.
[9] There was an initial
difference between Gate and its employees about whether the increase in minimum
wage applied to employees who
were not working at the time. However following
correspondence with AWU, Gate agreed to apply the new minimum wage rate of
$18.90
per hour to the employees from 1 April 2020, whether they were working or
not. See Employment Court decision, above n 2, at [17]–[21].
[10] Authority determination,
above n 1, at [35].
[11] At [38].
[12] At [41].
[13] At [41].
[14] At [42].
[15] At [43].
[16] Employment Relations Act
2000, ss 179 and 182(3)(b).
[17] Employment Court decision,
above n 2, at [5]–[6].
[18] At [29].
[19] At [45].
[20] At [38]–[39].
[21] At [41].
[22] At [54].
[23] At [69].
[24] At [71].
[25] Employment Relations Act, s
214(1).
[26] Sandhu v Gate Gourmet
New Zealand Ltd [2021] NZCA 203 [Court of Appeal leave decision] at
[19].
[27] Faitala (EC), above
n 6, at [39].
[28] Faitala (CA), above
n 7, at [18]; and Karelrybflot v
Udovenko [1999] NZCA 331; [2000] 2 NZLR 24 (CA) at [50].
[29] Interpretation Act 1999,
s 5(1).
[30] Commerce Commission v
Fonterra Co-operative Group Ltd [2007] NZSC 36, [2007] 3 NZLR 767 (footnotes
omitted).
[31] At [24].
[32] At [25].
[33] See Ross Carter Burrows
and Carter Statute Law in New Zealand (6th ed, LexisNexis, Wellington, 2021)
at 335–339.
[34] The origin of these
provisions as subsections of the same section in the 1945 Act underscores the
need to read them together as
part of a single coherent scheme: see [7] above.
[35] See Faitala (EC),
above n 6, at [39], quoted at [10] above.
[36] Faitala (CA), above
n 7, at [18].
[37] Karelrybflot v
Udovenko, above n 28, at [50].
[38] We recognise, of course,
that the ability to undertake such activities was severely restricted by the
pandemic and the lockdown
in 2020.
[39] Court of Appeal leave
decision, above n 26, at [19].
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