Hospitality Workers' Rights: Employment Issues in Hotels, Restaurants and Bars

Hospitality workers encounter several recurring employment problems that stem from the industry's operational demands and business practices. Wage theft is perhaps the most widespread issue, with many workers experiencing underpayment through unpaid trial shifts, incorrect calculation of holiday pay, failure to pay overtime rates, or deductions for breakages and till shortfalls that exceed legal limits.

Roster manipulation is another significant concern, where employers change shifts at short notice, cancel shifts without compensation, or use 'split shifts' that require workers to return for evening service after an unpaid afternoon break. This practice can severely impact workers' ability to maintain other employment or personal commitments.

Workplace bullying and harassment are also prevalent, often disguised as 'kitchen culture' or justified by the high-pressure environment. This can include verbal abuse, sexual harassment, discrimination, or creating hostile working conditions that force employees to resign.

Many hospitality workers also face issues with rest breaks and overtime, being denied proper meal breaks during busy periods or being pressured to work excessive hours without appropriate compensation or rest periods.

All hospitality workers are entitled to receive at least the minimum wage for every hour worked, including time spent on opening and closing duties, cleaning, stocktaking, and training. Your employer cannot require you to work unpaid trial shifts beyond what is reasonable to assess your suitability for the role, typically no more than a few hours.

Holiday pay calculations in hospitality can be complex due to irregular hours and varying pay rates. You're entitled to four weeks' annual leave plus public holidays, with holiday pay calculated on your average weekly earnings over the 12 months before taking leave. If you work irregular hours, your employer must keep accurate records and calculate your entitlements correctly.

Overtime rates apply when you work more than your normal hours, and penalty rates may apply for work on weekends, public holidays, or outside normal business hours, depending on your employment agreement. Your employer cannot make unauthorised deductions from your wages for breakages, till shortfalls, or uniforms beyond what is legally permitted.

If you discover unpaid wages or incorrect payments, you have six years to recover money owed to you. Keep detailed records of your hours worked and compare them regularly with your pay slips to identify any discrepancies early.

Your employer must provide reasonable notice of your work schedule, though what constitutes 'reasonable' depends on your employment agreement and whether you're casual or permanent. Generally, casual workers should receive at least 48 hours' notice of shifts, while permanent employees are entitled to more predictable scheduling.

Employers cannot unilaterally change your roster without consultation, especially if the changes significantly affect your availability or income. If you're employed for specific hours or days, your employer cannot simply reduce these without following proper consultation processes and potentially paying compensation.

Split shifts, where you work separate periods in the same day with unpaid time in between, must be clearly outlined in your employment agreement. If split shifts weren't part of your original agreement, your employer cannot impose them without your consent and proper consultation.

Zero-hour contracts, where you're not guaranteed any minimum hours, are heavily restricted in New Zealand. If you work regular hours over time, you may be entitled to guaranteed hours regardless of what your contract says. This is particularly relevant for hospitality workers who often work consistent patterns despite being classified as casual.

Hospitality workplaces present unique health and safety risks, from hot surfaces and sharp knives in kitchens to slip hazards from spills and cleaning chemicals. Your employer has a legal duty to provide a safe working environment and must take all practicable steps to prevent workplace injuries.

This includes providing proper training on equipment use, ensuring adequate safety equipment is available, maintaining clean and safe work areas, and implementing systems to manage risks like manual handling, chemical exposure, and working alone during late hours.

Workplace stress and mental health issues are increasingly recognised as serious concerns in hospitality. If you're experiencing workplace stress due to excessive workloads, bullying, or unreasonable demands, your employer has obligations to address these issues.

You have the right to refuse unsafe work and cannot be penalised for raising legitimate health and safety concerns. If you suffer a workplace injury, you're entitled to ACC coverage and your employer cannot dismiss you for making an ACC claim or taking time off for treatment.

The hospitality industry has historically tolerated aggressive management styles and inappropriate behaviour that would be unacceptable in other workplaces. However, employment law applies equally to all industries, and you have the right to work in an environment free from bullying, harassment, and discrimination.

Common forms of workplace bullying in hospitality include verbal abuse disguised as 'tough management', public humiliation, unreasonable criticism, exclusion from workplace activities, or setting impossible tasks. Sexual harassment is also unfortunately common, particularly towards younger or more vulnerable workers.

Your employer has a duty to provide a safe working environment, which includes protecting you from bullying and harassment by managers, colleagues, or customers. They must have proper policies in place and take complaints seriously when raised.

If you're experiencing bullying or harassment, document incidents carefully, including dates, times, witnesses, and what was said or done. Report the behaviour through your workplace's complaint process if one exists, and keep records of how your employer responds.

Remember that customers' behaviour towards staff is also your employer's responsibility. If customers are abusive or inappropriate, your employer should have systems in place to protect you and cannot require you to tolerate unacceptable treatment.

Many hospitality workers are classified as casual employees, but this classification must reflect the actual nature of your work relationship. If you work regular hours, have ongoing employment, or have a reasonable expectation of continuing work, you might actually be a permanent employee regardless of your contract's label.

True casual employment means work that is irregular, intermittent, and without a reasonable expectation of ongoing employment. If your work doesn't meet these criteria, you may be entitled to the additional protections that come with permanent employment, including greater job security and potentially notice periods for termination.

Both casual and permanent hospitality workers are entitled to the same basic rights: minimum wage, holiday pay, sick leave, bereavement leave, and protection from unjustified dismissal. The main differences relate to job security and notice periods rather than fundamental employment rights.

If you believe you've been misclassified as casual when you should be permanent, this could affect your entitlements and the process your employer must follow if they want to end your employment. An employment lawyer can help assess your actual employment status based on the reality of your working arrangement.

When employment problems arise in hospitality, your first step should usually be to raise the issue directly with your employer in writing. Many problems, particularly payroll errors or misunderstandings about entitlements, can be resolved quickly through direct communication.

Keep detailed records of all employment-related issues, including copies of your employment agreement, pay slips, roster communications, and any correspondence with your employer. In hospitality, where verbal instructions and informal arrangements are common, written records become particularly important.

If direct communication doesn't resolve the problem, you may need to consider more formal options. For wage and entitlement disputes, you might make a claim to the Employment Relations Authority. For more serious issues like unjustified dismissal or significant breaches of employment rights, a personal grievance may be appropriate.

Don't let the informal culture of hospitality discourage you from asserting your rights. Employment law protects all workers equally, and you cannot be lawfully dismissed or disadvantaged for raising legitimate employment concerns or seeking advice about your rights.

Consider seeking legal advice if you're facing significant underpayment of wages, particularly if the amount is substantial or the underpayment has been ongoing. Employment lawyers can help calculate exactly what you're owed and pursue the most effective recovery method.

Legal help is also important if you've been dismissed and believe the dismissal was unjustified, or if you're facing disciplinary action that could lead to dismissal. The processes and timeframes for challenging dismissals are strict, so early legal advice is crucial.

If you're experiencing serious workplace bullying, harassment, or discrimination that your employer has failed to address adequately, an employment lawyer can advise you on your options and help you navigate the complaint process effectively.

For complex issues involving employment agreement interpretation, particularly around casual versus permanent status, overtime entitlements, or restrictive clauses, legal advice can help clarify your rights and obligations.

Remember that many employment lawyers offer initial consultations to assess your situation, and some work on contingency arrangements for certain types of claims. Don't assume legal help is unaffordable without exploring your options first.