Woman fails in bid to stop IRD action

A woman's effort to stop her employer making deductions from her wages on behalf of the Inland Revenue Department (IRD) has been rejected by the Employment Relations Authority.

Diane Meenken had claimed Rigg Zschokke Ltd was proposing to breach her employment agreement and the Wages Protection Act 1983 by making deductions from her wages without her written consent, and despite her explicit notice forbidding such deductions.

The company said it neither wanted to breach the agreement nor the Act, but, after obtaining legal advice, believed it was under a statutory obligation to implement an IRD deduction notice or face severe financial penalty.

Authority member Denis Asher declined Ms Meenken's application.

"Because of the provisions of the Tax Administration Act...I am satisfied the company is obliged to effect the deductions on behalf of the IRD," he said.

"Any issue Ms Meenken has about the deduction is, I suggest, best pursued with the IRD."

- NZPA