An Auckland employer that paid its workers only $5 an hour while training may face prosecution for breaching the Minimum Wage Act.
The Kelston branch of the sandwich chain Subway also told new employees that they would have to pay the employer $1500 for the cost of their one-day introductory training if they quit the job within three months.
Youth Law solicitor Nick Harris said the provisions in the firm’s employment contract were “abhorrent” and the $5 training rate wasa breach of the minimum wagelaw.
“That is just outrageous, quite frankly,” he said. “I struggle to see how that could be justified at all under the minimum wage legislation.”
Min Sheen Tan, 19, took his contract with Kelston Subway to Mr Harris and to the Labour Department after he was employed on November 21, yet failed to receive any formal training. He quit after three days.
FranchiseBrief.com on December 17th, 2007 at 5:01 pm
That is scandalous! Hopefully Subway will terminate this bad franchisee’s franchise agreement!