A medicinal cannabis firm in New Zealand has been ordered to pay a significant sum to a former employee after a lengthy dispute over unpaid wages. Kariki Pharma Limited (KPL) must compensate Alexis Lopez, who served as the company’s chief technical officer, a total of $240,000 for two years of unpaid salary. This ruling comes after Lopez took his case to the Employment Relations Authority (ERA), highlighting serious issues within the company’s payment practices.
The Unfolding of Events
Lopez, originally from the United States, relocated to New Zealand with his family in 2019, excited about the potential of the medicinal cannabis industry. However, his enthusiasm quickly turned to frustration when his salary payments began to arrive late and eventually ceased altogether in June 2020.
- Key Timeline:
- 2019: Lopez hired as chief technical officer.
- 2020: Salary payments delayed, then stopped.
- 2021: Lopez raises concerns about unpaid wages.
- 2022: Resigns and files a claim with the ERA.
Despite the challenges, Lopez believed in the company’s mission and accepted shares as a form of payment for his overdue salary. He even invested approximately $140,000 of his own money into KPL, hoping to see it thrive. However, as time passed, his financial situation became increasingly precarious, leading him to seek resolution through legal channels.
The Authority’s Findings
The ERA’s investigation revealed a troubling lack of documentation regarding Lopez’s salary deferral. KPL’s directors claimed that Lopez had agreed to postpone his salary, but the evidence did not support this assertion.
- ERA’s Key Findings:
- No written agreement existed regarding salary deferral.
- Lopez was unjustifiably disadvantaged and dismissed.
- KPL’s directors failed to provide adequate evidence of their claims.
ERA member Claire English emphasized that the absence of any formal agreement meant Lopez’s salary remained unpaid. The ruling mandated KPL to pay Lopez $193,153 in unpaid wages, along with additional amounts for holiday pay, KiwiSaver contributions, and compensation for emotional distress.
The Broader Implications
This case raises significant questions about employment practices within the burgeoning medicinal cannabis industry in New Zealand. As companies like KPL navigate the complexities of a new market, the treatment of employees must remain a priority.
- Considerations for Employers:
- Ensure clear, written agreements regarding salary and compensation.
- Maintain open lines of communication with employees about payment issues.
- Recognize the importance of fair treatment to foster a positive workplace culture.
Lopez’s experience serves as a cautionary tale for both employers and employees in the sector. The ruling not only highlights the need for accountability but also underscores the importance of protecting workers’ rights in emerging industries.
A Personal Perspective
Lopez expressed his gratitude for the support he received from the ERA and the broader New Zealand community. He hopes to move forward from this challenging chapter in his life, emphasizing the emotional toll the situation has taken on him and his family.
“I stayed as long as I did because there were, by then, very few options for me to do otherwise,” he shared. His story resonates with many who have faced similar struggles in the workplace, reminding us of the importance of fair treatment and the need for robust protections for workers.
As the medicinal cannabis industry continues to grow, it will be crucial for companies to learn from cases like Lopez’s to ensure they uphold ethical standards and foster a supportive environment for their employees.
