No contract, payments, and a 'bugger off' comment proved costly for this employer
A New Zealand worker who openly admitted defrauding the welfare system just won nearly $24,000 in a dismissal case that should worry any employer relying on handshake deals.
Mark Beveridge worked three weeks at a country pub before everything fell apart. The Employment Relations Authority ruled on January 29, 2026, that he was unjustifiably dismissed and awarded him $23,770, despite circumstances that would make most employers assume they had the upper hand.
Here's what happened. Beveridge was collecting a sickness benefit that allowed him to work just 10 hours weekly. Instead, he was pulling 30 to 40 hours at the Ashurst Deer N Duck Inn, owned by PVB Investments Limited. His boss, Percy Burlace, knew about the arrangement and paid Beveridge in cash. No employment contract. No wage records. Nothing on paper.
The two men had known each other for 15 years. Burlace had previously employed Beveridge as a farm manager and had even provided him housing at various times. When Burlace needed someone to set up and run the kitchen at his newly purchased inn in August 2023, he offered Beveridge the job.
The relationship imploded on September 3, 2023. Police called Burlace about marijuana plants on a farm property he owned where both men lived. Officers found and removed 12 plants from a locked shed near Beveridge's dwelling. Beveridge was never charged.
Three days later, when Beveridge showed up at the inn, Burlace told him to bugger off before the police arrived. Beveridge left. The next day he texted asking for his wages. Burlace replied they'd be ready for pickup at the bar.
Burlace argued Beveridge had quit. The authority disagreed. Member Alyn Higgins found that despite their long friendship and history of daily communication, Burlace never clarified whether Beveridge was actually dismissed or could return once he'd sorted things with police.
The authority acknowledged the elephant in the room. As the respondents' counsel described it, Beveridge defrauded Work and Income because he was working for more than he was permitted to do so while also in receipt of a sickness benefit. The employer argued this should reduce any compensation.
It didn't. Higgins cited case law showing that social security benefits don't diminish an employer's liability for lost wages. Any question of repaying those benefits falls between the government agency and the individual.
PVB Investments Limited got hit with the bill: $13,520 for lost wages until Beveridge found new work in January 2024, $10,000 for humiliation and loss of dignity, and $249.60 in unpaid holiday pay with interest.
Despite admitting he'd broken employment law by not providing a written agreement or keeping proper records, Burlace faced no penalties. The authority noted he was an experienced employer who'd been in business for 40 years and knew his obligations. But Higgins also observed that Beveridge clearly wanted to avoid documentation that might jeopardize his benefit payments.
What this means for employers: statutory obligations don't evaporate because your employee is breaking other laws. Informal arrangements, even when both parties benefit from keeping things off the books, create massive liability when relationships sour. And telling someone to bugger off, no matter how casually you meant it, can cost you tens of thousands of dollars if you don't follow up with proper process.
The case offers a stark reminder that friendship and flexibility are no substitute for documentation and due process.
