Payal v JB Hospitality Ltd [2026] NZERA 18 - Constructive dismissal, wage arrears, and premium payments

What the case was about

The applicant travelled to New Zealand on an Accredited Employer Work Visa to work as a duty manager. She alleged that she was not paid wages for the first month, was underpaid for the hours worked after wage payments started, was required to pay wages to another employee, and faced working conditions (including long hours and lack of breaks) that made continuing employment untenable.

Key findings (plain English)

• Constructive dismissal: The Authority was satisfied the employer's breaches were serious enough that resignation was reasonably foreseeable.
• Wage and holiday arrears: In the absence of reliable wage and time records, the Authority relied on the evidence available and found arrears were owed.
• Premium payment: A payment directed to be made to another employee was treated as an unlawful premium payment and ordered to be repaid.
• Director involvement: Leave was granted for recovery from the director if the company defaults, under the employment standards "person involved" provisions.
• Penalties: Although penalties can be available for employment standards breaches, the Authority recorded that penalties were not able to be ordered because the penalty application was out of time.

Orders made (amounts)

Practical lessons for employers

• Pay correctly and on time. Non-payment is treated as a fundamental breach and can support a constructive dismissal finding.
• Keep wage and time records. Missing or unreliable records usually harms the employer's ability to defend arrears claims.
• Do not route wages through third parties. Directing an employee to pay wages to someone else can create serious legal risk (including unlawful premium payment issues).
• Breaks and minimum standards matter. Rest and meal break failures and minimum wage issues can compound liability and the seriousness of the breach.
• Penalty timing matters. If penalties are sought, the limitation period must be met.