Wage theft now criminalised in NZ

An amendment to the Crimes Act 1961 received Royal assent on 13 March.  Exploited workers including migrants can now complain to Police if their wages and holiday pay have been deliberately withheld.  Previously, workers had to bring civil cases which can be time consuming and costly. 

The Labour Inspectorate, part of the Ministry of Business, Innovation and Employment (as is the Employment Relations Authority) is also an option for recovering unpaid wages, but there is a significant backlog.  Read about a recent case here: Wages underwater, Labour Inspectorate steps in  (1 November 2024). 

Another migrant exploitation case involving a company called E Cycles NZ Ltd was widely publicized, and not only is the company now in liquidation, but the publicity tanked the career of a Member of Parliament due to that MP’s spouse being the director.  To the best of our knowledge the two employees concerned have still not been paid.

The Parliament of New Zealand enacts as follows:

1. Title

This Act is the Crimes (Theft by Employer) Amendment Act 2022.

2. Commencement

This Act comes into force on the day after the date on which it receives the Royal assent.

3. Principal Act

This Act amends the Crimes Act 1961.

4. New section 220AA inserted (Theft by employer)

Before section 220A, insert:

220AA Theft by employer

(1) This section applies to a person (A) who—

(a) employs another person (B); and

(b) is required to pay any money owed to B in relation to the employment, whether—

(i) under an employment agreement between A and B (whether or not the agreement is in writing); or

(ii) as otherwise required under law (for example, under the Holidays Act 2003, Minimum Wage Act 1983, or the Wages Protection Act 1983).

(2) If A intentionally fails to pay the money to B, A commits theft and is liable,—

(a) if A is an individual, to imprisonment for a term not exceeding 1 year, a fine not exceeding $5,000, or both:

(b) in any other case, to a fine not exceeding $30,000.

Source: Crimes (Theft by Employer) Amendment Bill 245-1 (2023), Members Bill – New Zealand Legislation