Auckland pharmacies accused of under-paying staff and not keeping proper employment records

Ten Auckland pharmacies are accused of underpaying their staff. Photo/Getty Images

Ten Auckland pharmacies have been accused of paying staff less than minimum wage, not giving holiday pay and failing to keep proper records of employment.

Labour Inspectorate general manager George Mason confirmed a claim had been filed with the Employment Relations Authority (ERA) against 10 South and West Auckland pharmacies for breaching their obligations as employers.

"We take these issues very seriously, and are working closely with Immigration New Zealand to ensure that these matters are dealt with appropriately. With the case now going into the ERA, we will not be commenting further at this stage."

Now that a claim had been filed, the Employment Relations Authority would set a date for a hearing where the authority would consider the evidence before them and issue a determination.

Spokesman for the pharmacies Michelle Boag said the companies were advised of a Ministry of Business, Innovation and Employment (MBIE) investigation alleging they were not compliant with minimum employment standards in April last year.

She said the issues were surrounding a professional development programme being provided to employees alongside their work to help them gain their qualifications.

"The programme was discontinued in early 2016 and since then we have attempted to engage with MBIE to resolve any concerns that had been raised."

On April 20 the companies were advised the ministry had filed a claim with the Employment Relations Authority in relation to 19 employees who worked for the 10 pharmacies.

She said the companies would continue to co-operate with the ministry to address the issues.

According to the Companies Office, all the pharmacies were directed by Rakesh Patel, Kerry Oxenham and Neenten Bikha. Navin Patel also owned a small number of shares in each company.

Rakesh Patel was also managing director of Nirvana Health Group, the largest independent primary health care group in New Zealand, which was founded by his parents Dr Kantilal Patel and Ranjna Patel

Many of the pharmacies involved fell under the Unichem brand overseen by Green Cross Health.

The pharmacies which have had claims filed against them are:
Avondale Community Pharmacy Ltd
Bairds Rd Community Pharmacy Ltd
Family Care 7 Day Pharmacy Ltd
Mangere Community Pharmacy Ltd
Otara Community Pharmacy Ltd
Ratanui Community Pharmacy Ltd
South Seas Community Pharmacy Ltd
Takanini Community Pharmacy Ltd
Victoria Community Pharmacy Ltd
Waiora Community Pharmacy Ltd