Industrial Relations Act 2016

This section applies if an employee—

has performed work—

in cultivating, or otherwise improving, land that is subject to a mortgage; or

in cultivating, or otherwise in connection with, a crop that is subject to a lien; or

relating to animal or vegetable matter prepared or manufactured by machinery that is subject to a bill of sale; or

in tending, feeding, driving, or otherwise in connection with, stock that is subject to a mortgage; and

is prevented from, or hindered in, recovering wages for the work from the mortgagor as employer because—

the mortgagee has entered into, or taken possession of the land, crop, machinery or stock, or is taken to have done so; or

the mortgagee has sold the land, crop, machinery or stock, under the mortgagee’s security; or

a cheque, draft or order drawn by the mortgagor on the mortgagee is dishonoured by the mortgagee.

The mortgagee is taken to be the employee’s employer for the performance of the work.

The mortgagor is taken, in engaging the employee for the work, to have acted as the mortgagee’s authorised agent.

Subsections (2) and (3) do not affect appropriate accounting as between the mortgagor and the mortgagee.

The mortgagee is not liable for the employee’s wages that have become payable more than 6 months before whichever of the following events happens first—

the employee first applies to the mortgagee for payment of the wages;

the mortgagee takes possession of, or sells, the land, crop, machinery or stock.

The mortgagee’s liability under this section—

is additional to the mortgagor’s liability for the employee’s wages; and

does not affect rights, liabilities, functions and powers as between the mortgagor and employee.

An employee does not lose a right to bring proceedings against the mortgagee for unpaid wages, and costs of the proceedings, if the employee—

brings proceedings against a mortgagor for wages, whether or not the employee obtains an order for payment against the mortgagor; and

because of a reason in subsection (1)(b), fails to obtain payment of the wages, or part of the wages, from the mortgagor.