Former Wendy’s NZ Owners Reject Holidays Act Breach Ruling

The former owners of Wendy’s NZ, the Lendich family, have been unsuccessful in their attempt to challenge an improvement notice issued by the Employment Relations Authority (ERA), concerning violations of the Holidays Act. This ruling highlights significant issues regarding holiday entitlements and pay practices within the fast-food chain.

The case revolves around multiple breaches that date back six years. Allegations against the Lendich family include failing to compensate employees for public holidays that they did not work but were considered regular working days. Additionally, there were claims of improper calculations of time-and-a-half pay for public holidays worked, a lack of alternative holidays for those who worked on public holidays, and incorrect assessments of annual holiday pay.

In June 2023, the Labour Inspectorate initiated an investigation into Lendco, the parent company of Wendy’s NZ, after the Unite Union filed a complaint with the ERA. The complaint raised serious concerns about the treatment of 33 union members, alleging that Lendco was not compensating employees for unworked public holidays, particularly when those days coincided with their regular work schedule.

Implications for Employers

Danielle Lendich, the former chief executive of Wendy’s NZ, has voiced strong objections to the ERA’s decision, suggesting that it sets a precedent that could impact employers across the board. She argues that the interpretation of the Holidays Act could lead to challenges for many businesses, potentially increasing their liabilities regarding employee entitlements.

The ruling comes at a time when there is heightened scrutiny on compliance with employment laws in New Zealand, particularly in the fast-food sector. The case has drawn attention not only for its legal implications but also for its potential to influence the broader conversation around employee rights and fair compensation.

As the Lendich family considers their next steps, the outcome of this case may serve as a critical reminder for employers to review and ensure compliance with employment legislation. This situation underscores the importance of maintaining clear and fair practices regarding employee rights, particularly in relation to holiday pay and entitlements.

The implications of this ruling extend beyond Wendy’s NZ, potentially serving as a cautionary tale for other businesses navigating similar employment challenges. As discussions continue around the interpretation of the Holidays Act, employers are encouraged to evaluate their policies and practices to avoid similar pitfalls.