Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Labour Inspectorate challenges Subway franchise

Media release

31 July 2019

Labour Inspectorate challenges Subway franchise to comply with employment standards

The Employment Relations Authority (ERA) has ordered Healthtop Limited trading as Subway Dargaville, to pay nearly $10,000 in penalties and costs for breaches of the Holidays Act, and failure to comply with a Labour Inspectorate improvement notice.

The Inspectorate visited the Subway store as part of a proactive audit in 2017 and found it was not providing staff with correct pay for working public holidays, nor was it providing them with days in lieu. The Inspectorate subsequently issued an improvement notice requiring Healthtop to rectify its practices and calculate arrears to workers.

When Healthtop failed to comply with the improvement notice, the Inspectorate lodged the case with the ERA.

“Subway Dargaville was given an opportunity to set things right but they chose not to do so. The ERA ruling sends a clear message that ignoring the Labour Inspectorate will result in substantial penalties,” says Labour Inspectorate Regional Manager Callum McMillan.

“Consumers are becoming more conscious of the ethics of the businesses from which they buy. It’s baffling that a highly visible brand such as Subway does not have assurance systems in place to ensure franchisees meet employment standards and comply with demands by the regulator. It also raises questions about Subway’s due diligence processes for those joining the brand.

“As a result of this obvious lack of oversight, Subway franchisees can expect to be a priority focus for the Labour Inspectorate,” said Mr McMillan.

The ERA found that most employees of Healthtop were school or university students, and as such are particularly vulnerable. It also found Healthtop gained financial benefit by not paying its employees their entitlements when they were due.

The determination orders Healthtop to pay $7,000 in penalties and $2,225 in costs, with 21 days to comply with the issued improvement notice.

MBIE encourages anyone concerned about the employment situation of themselves or someone they know to call its contact centre on 0800 20 90 20, where their concerns will be handled in a safe environment.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>


9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>


Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>