A rest-home operator says it accepts a Court of Appeal ruling it cannot deduct employer contributions for KiwiSaver from the pay of staff on the minimum-wage.
Vasivasi Faitala and Dalrene Goff, successfully argued at the Employment Court last year that Terranova Homes and Care breached the Minimum Wage Act with the deduction.
The Court of Appeal has now found in their favour as well.
Terranova said the court's decision clarifies the law. Executive director Terry Bell said the company has now increased pay rates for some of its employees.
The Service and Foodworkers Union said the ruling sends a signal to all employers that the minimum wage is sacrosanct and must be paid in full.