1 July 2022
Ref: DOIA 2122-2264
Alex Harris
[FYI request #19555 email]
Dear Alex,
Thank you for your email of 1 June 2022 to the Ministry of Business, Innovation and Employment (MBIE)
requesting, under the Official Information Act 1982, the following information:
“any estimate MBIE has of the overall cost of wage theft in New Zealand.”
“If there is a policy paper, briefing, or document containing that estimate, I would like a copy of
the document.”
The concept of ‘wage theft’ general y describes an intentional or persistent breach of minimum standards
of pay. In particular, you refer to scenarios where employers force employees to work overtime, deny
overtime payment, fail to pay the minimum wage, do not pay annual leave and holiday entitlements, or
make illegal deductions from pay.
Issues relating to incorrectly paid wages and holiday entitlements can be dealt with directly between an
employer and employee, or with the assistance of MBIE’s Early Resolution Service and Employment
Mediation Service. Alternatively, a resolution can be sought from the Employment Relations Authority or
Employment Court. Unions play an important role in helping to identify and resolve issues relating to pay
and other employment entitlements, sometimes directly with the employer, and sometimes with the
assistance of these other institutions.
MBIE’s Labour Inspectorate is responsible for investigations into breaches of minimum employment
standards, including the requirements relating to the minimum wage, holiday pay, leave entitlements and
record keeping. Where necessary, the Inspectorate takes steps to ensure that workers receive their
minimum entitlements via enforcement actions such as Enforceable Undertakings or Improvement
Notices, and seeking penalties from the Employment Relations Authority or Employment Court.
There is, in other words, a multiplicity of avenues in which incorrectly paid wages and holiday
entitlements can be raised and addressed. It would not be possible for MBIE to try and record the
outcome of every action taken via each of these mechanisms.
Neither would it be possible to code particular outcomes as wage theft in a way that is beyond debate.
Employment disputes are often described as ‘intensively fact-specific’, and each situation is unique.
Sometimes a clear bright line in terms of incorrectly paid earnings can be established, but this is not
always the case. Also, the employment institutions are deliberately geared to seek voluntary and
consensual resolution of issues where this is possible and appropriate. For these reasons, the fact that an
employer offers or is required to make up a shortfall in wages or holidays does not necessarily mean that
this sum of money should be coded as counting towards the cost of wage theft in New Zealand.
MBIE1376631
I am therefore refusing your request under section 18(e) of the
Official Information Act 1982, as the
information requested does not exist.
You have the right to seek an investigation and review by the Ombudsman of this decision. Information
about how to make a complaint is available
at www.ombudsman.parliament.nz or freephone 0800 802
602.
Yours sincerely,
Chris Hubscher
Manager, Employment Standards Policy