A Lower Hutt restaurant has been fined $90,000 after two migrant workers were underpaid, had their wages deducted, and were made to work excessive hours.
The company, which can't be named at this stage, was sentenced at the Wellington District Court after pleading guilty to two charges.
The charges related to the exploitation of two migrant workers from India who were employed at the restaurant between 2017 and 2021.
An investigation by the Ministry of Business, Innovation, and Employment uncovered a "consistent pattern of excessive hours, underpayment, and deductions from wages".
The workers, who held temporary visas, regularly worked up to nine hours a day, six days a week, while being paid for far less.
Despite often working close to 54 hours a week, one worker was paid as little as 36.5.
The two victims had a combined total of $36,217.78 in unpaid minimum wage entitlements. They were also owed a combined $36,284.43 in pay for holidays and leave.
Between 2020 and September 2021, the restaurant docked $50 from one of the workers' pay slips, saying it was for food. Meanwhile, they increased the employees' hourly rate to $25.50 to meet the requirements for an Essential Skills residency visa application.
Jason Perry, national manager, investigations, at MBIE said more than $72,000 in arrears was owed. He said it demonstrated the "seriousness of the exploitation".
“Employers are solely responsible for meeting visa‑related pay requirements and must never pass those costs on to workers,” Perry said.
“Using visa requirements or a worker’s immigration status to influence their employment is unlawful and will not be tolerated.”
At sentencing, the company was ordered to pay a $90,000 fine.
Prior to this, a reparation order was made for $46,574.74 to be paid to the victims via the Court and $25,926.47 to be paid to the Inland Revenue Department. Additional reparations of $9,361.66 were ordered at sentencing.
Permanent name suppression for the business and its directors was refused. They cannot be named yet, as they have applied to extend interim suppression.
“Exploitation is not a business model; it is unlawful, harmful, and taken seriously” Perry said.
“Ensuring New Zealand remains a fair place to work depends on holding employers who breach minimum standards to account.”
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