A South Auckland petrol station has been ordered to pay $20,000 after making its employees pay for stolen petrol.
The Employment Relations Authority (ERA) ruled on Monday that Mittal and Son Limited (MSL), trading as Mobil Porchester Rd in Takanini, had breached employment law.
MSL's employment agreements contained a policy which said staff on duty would need to cover the cost of stolen fuel in cases where customers drive off without paying.
This policy was enforced at least twice, with one of the workers being under 20.
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"It's extremely disappointing to see that Mobil has failed to stop these sorts of issues from occurring in businesses that trade under its brand," said Labour Inspectorate regional manager Callum McMillan.
"The fact that an employee has signed an employment agreement that forced them to pay for theft by customers does not make the clause or its enforcement legal.
The director of MSL, Sohan Mittal, said he was unaware his company was breaching employment law, despite seeking legal advice on his employment agreements.
Despite the fact that MSL had taken steps to rectify its practices such as changing its pumps to pre-pay, and removing the policy from its agreements, the ERA ruled Mittal personally liable for an additional $3,000 in penalties.
"Mobil should take leadership to ensure that businesses licensed to carry their brand are complying with minimum employment standards and treating their frontline staff fairly," said McMillan.
"Failure to do so brings into question Mobil's claim of being 'a responsible corporate citizen' and tarnishes the reputation of all Mobil outlets."
Newshub.
