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Payment of remuneration

In the vast majority of cases the obligation to pay an employee’s remuneration will continue,  irrespective of the ability of the business to trade.  I will deal with each type of employee separately.

1. Salaried employees:  The employment agreement stipulates an obligation to pay a yearly sum (whether in monthly or fortnightly instalments).  This obligation endures until the agreement ends irrespective of the ability of the business to trade.
    
2. Waged employees (i.e. paid by the hour):  In most cases waged employees will have regular hours of work per week (whether full time or part time or whether the times for working fluctuate weekly by roster).  This places an obligation on the business owner to pay for those normal hours even where work in not available.  Even where the employment agreement does not stipulate normal or regular hours of work per week, if a previous pattern of employment has established regular hours each week, those hours will be deemed the employee’s normal hours of work and the obligation to pay for those hours will remain.
    
3. Casual employees:  Casual employment is the only type of employment where there is no obligation on the employer to provide work and therefore there is no corresponding obligation to pay casual employees unless they carry out work.
    
4. Fixed term agreements: Whilst fixed term agreements are bot commonplace, they may be "frustrated" by the earthquake where the fixed term is going to expire, or is likely to expire, before the business is able to recommence trading.  In simple terms, frustration occurs where an event outside the control of either party renders the contract unable to be performed and is therefore terminated. In such a situation there will be no obligation to pay wages because the contract comes to an end immediately. 

Circumstances which may avoid the need to pay salary or wages

There may be situations where the employer does not have to pay wages: