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Red Guard Ordered to Pay Close to $10,000 in Unpaid Wages

Being paid late is never nice.

But wages that are never paid at all are worse. The Employment Relations Authority recently decided a case involving just that.

In this decision, Red Guard, a security services provider, was ordered to pay $9389 plus interest for numerous breaches of employment standards. The breaches included unpaid wages for 128 hours, failure to record and pay holiday entitlements and a failure to provide a written employment agreement.

 

Background

Shabeena Mansoori was employed by Red Guard Security Services for 3 months in 2023.

During the period from 1 March 2023 – 31 March 2023, she worked long hours including two public holidays for a total of 128 hours. She was not paid once during this period.

 

Issues During Employment

The issues began when she was not given a written employment agreement from the company’s sole director, Harpreet Singh. They had agreed verbally that she would be paid fortnightly however, when the time came around, Singh never paid the money.

Singh claimed there had been a security hack and that they had not been paid by their clients. For these reasons he said he could not pay Mansoori.

 

Attempted Recovery

Mansoori first sought to recover her losses through contacting Singh directly. When he started ignoring all communication she went to mediation.

Mediation was unsuccessful and the Employment Relations Authority (ERA) had to step in.

 

Employment Relations Authority

The ERA held that “Mr Singh knowingly aided, abetted and directly caused all of the breaches of employment standards that the respondent engaged in because he had complete control over the respondent’s actions as Mrs Mansoori’s employer.”

The Authority noted that Singh’s failure to pay Mansoori “caused her considerable stress and financial embarrassment”.

The ERA ordered Red Guard Security to pay Mansoori $9389 with interest until paid in full.

If the company did not pay, the Authority ordered that Singh must personally pay.

 

Takeaways

From an employee perspective this case highlights the importance of spotting potential red flags with your employer before they become an issue. Spotting them early can save thousands in loss of earning and even more in potential legal costs.

This case is also a reminder for employers to ensure they fulfil their employment obligations.

 

If you have spotted some potential red flags or are unsure about your obligations as an employer, please get in touch with the team here at Watermark Employment Law – we offer free initial consults and would love to assist you in the matter.