Jagjit Singh v L&B Foods Ltd t/a Kafal Indian Cuisine [2026] NZERA 13 - Unjustified dismissal and wage arrears

What the case was about

The employee alleged unpaid wages and leave entitlements, and claimed he was unjustifiably disadvantaged because a large proportion of his income went to rent and utilities for accommodation associated with the employer. The employer denied underpayments and said the dismissal was justified on serious misconduct.

Key findings (plain English)

• Unjustified dismissal upheld: The employer dismissed the employee without notice. The Authority found the process defects were more than minor and did not meet the fair and reasonable employer standard.
• Record-keeping failures matter: The Authority was not satisfied the employer kept an accurate record of hours worked each day, which affected the wage arrears assessment.
• Wage arrears ordered: The Authority ordered gross wage arrears plus 8 percent holiday pay, and interest.
• Public holiday short-payment: A short-payment for 1 and 2 January 2024 was ordered, plus 8 percent holiday pay.
• Rent disadvantage claim failed: The Authority found the accommodation was not a term or condition of employment and the evidence did not substantiate an unreasonable deduction claim.
• Contributory conduct reduced remedies: The Authority reduced the dismissal remedies (lost wages and compensation) by one third.

Orders made (amounts)

Practical lessons

• Dismissal process must be fair. Even where misconduct is alleged, a fair investigation and a genuine opportunity to respond are typically required.
• Keep proper wage and time records. Missing or unreliable records can materially weaken an employer position on wage claims.
• Avoid informal cash arrangements. Paying partial wages in cash (or outside normal payroll records) creates obvious compliance and evidential risk.
• Accommodation and deductions should be documented. If rent or utilities are involved, keep clear written agreements and evidence of how payments are made.