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Employment Relations Act 2000

Additional provisions relating to enforcement of employment standards - Compensation orders

142J: Court may make compensation orders

You could also call this:

“The judge can order someone to pay money to a worker they have wronged.”

The court can order someone to pay money to an employee if they’ve done something wrong. This is called a compensation order. The court can do this if they’ve already said the person broke the law, and if the employee has been hurt or lost something because of it.

If your boss can’t pay you the money you’re owed, the court might tell someone else involved to pay you instead. But they’ll only do this if your boss really can’t pay.

Only a Labour Inspector or you (if you’re the employee who’s been hurt) can ask the court to make a compensation order. You can ask for this at the same time as you ask the court to say someone broke the law, or you can ask for it later.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6803078.

Topics:
Work and jobs > Worker rights
Crime and justice > Courts and legal help
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142I: Limitation period for actions for pecuniary penalty orders, or

“You have one year to ask for a money punishment after someone breaks the work rules.”

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142K: Application of section 132 of this Act and section 83 of Holidays Act 2003, or

“Other laws about payment and holidays can be used when asking for money if someone breaks the rules at work.”

Part 9A Additional provisions relating to enforcement of employment standards
Compensation orders

142JCourt may make compensation orders

  1. The court may make a compensation order against a person if—

  2. the court has made a declaration of breach in respect of the person; and
    1. the court is satisfied that the employee concerned (the aggrieved employee) has suffered, or is likely to suffer, loss or damage because of the breach.

      1. The court may not make a compensation order against a person involved in a breach for wages or other money payable to an employee except to the extent that the employee’s employer is unable to pay the wages or other money.

      2. An application for a compensation order may be made—

      3. only by a Labour Inspector or the aggrieved employee; and
        1. at one of the following times:
          1. the same time as the application for a declaration of breach; or
            1. subsequently, whether before or after the application for a declaration of breach is determined.

            Notes
            • Section 142J: inserted, on , by section 19 of the Employment Relations Amendment Act 2016 (2016 No 9).