The Employment Relations Authority has ordered an Auckland pharmacy group to pay $92,000 in penalties for failing to keep accurate records and underpaying workers at seven Auckland pharmacies.

Tāmaki Health, formerly known as Nirvana Health Group, underpaid workers by more than $255,00, highlighting a hole in the auditing process when it comes to safeguarding the labour standards of employees, the Ministry of Business Innovation and Employment said.

The determination followed a 2017 Labour Inspectorate investigation that found 12 migrant trainee pharmacy technicians, on agreement from the Open Polytechnic to study and work at the pharmacies, received an equivalent hourly rate below the minimum wage.

“This determination found against seven pharmacies, all of which should have had their minimum employment standards firmly in place from the top down,” Labour Inspectorate national manager Stu Lumsden said.

“It is disappointing to see pharmacies who are funded through Pharmac, District Health Boards, the Ministry of Health, and ACC failing to meet basic labour rights in such a serious way.

“This raises questions about the funding, quality management, and risk management systems in the sector.”

Lumsden called on businesses and organisations to take a closer look at their quality management and risk management processes to make sure that labour rights considerations are being covered.

“Minimum employment standards are a legal requirement. Auditing for this compliance is in the best interests of a business’s overall sustainability and everyone involved in it,” Lumsden said.