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Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Penalties and offences - Offences

163: Offence to prejudice employees because of student loan repayment liability

You could also call this:

“It's against the law for bosses to be mean to workers because of student loans”

If you’re an employer, you can’t treat someone unfairly just because they have a student loan. This means you can’t refuse to hire someone or pay them, fire them, stop paying them, or make their job harder because they owe money on a student loan. You also can’t bully, force, punish, or discipline someone because of their student loan.

If you do any of these things, you’re breaking the law. If you’re caught, you might have to pay a fine of up to $2,000. Also, if you’re found guilty, a judge might make you pay money to the person you treated unfairly to make up for any harm you caused them.

Remember, it’s important to treat all your employees fairly, no matter what kind of loans they might have.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3180350.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans Work and jobs > Worker rights
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162B: Arrest of liable person, or

"The court can stop you from leaving New Zealand if you haven't paid your student loan"

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164: Proceedings to be commenced by Commissioner, or

"The Commissioner starts court cases when someone breaks student loan rules"

Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Penalties and offences: Offences

163Offence to prejudice employees because of student loan repayment liability

  1. An employer commits an offence against this Act if the employer—

  2. refuses to employ, or to pay salary or wages to, another person because that person is a borrower; or
    1. dismisses, or threatens to dismiss, another person from his or her employment because that person is a borrower; or
      1. terminates, or threatens to terminate, the payment of salary or wages to another person because that person is a borrower; or
        1. prejudices, or threatens to prejudice, another person in his or her employment or otherwise in the receipt of salary or wages because that person is a borrower; or
          1. intimidates or coerces, imposes any pecuniary or other penalty on, or takes any other disciplinary action in relation to another person because that person is a borrower.

            1. A person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $2,000.

            2. If an employer is convicted of an offence against subsection (1), the Court may order the payment of compensation to the borrower for loss or damage suffered as a result of the offence.

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