An restaurant and takeaway business and its owner has been ordered to pay $130,000 for the "sustained and egregious" exploitation of five workers.
Following an Employment Relations Authority (ERA) investigation, SSM Investments Limited was ordered to pay penalties of $90,000 and owner Shazneen Shariza Khan to pay penalties of $40,000.
The business — which traded under the name Souvlaki & Kebab Grill in Cromwell and Chicken Bites in Auckland — has also previously been ordered to pay $147,001 in wage arrears to five former employees.
ERA member Philip Cheyne said the conduct "undermines implied trust and confidence obligations and statutory good faith requirements" and "demonstrates the inherent inequity of power in the employment relationship and undermines employment standards".
Cheyne found the business had breached multiple employment standards including: failing to pay the five workers the minimum wage; not keeping accurate wages and time records; failing to keep holidays and leave records; failing to pay the employees sick leave, holiday and public holiday pay and making unlawful deductions from employees' wages.
Cheyne also found Khan was personally involved in the breaches, and therefore liable for penalties.
Labour Inspectorate Investigations Manager for the Central and Southern regions Taahera Begum said that while the business and Khan had acknowledged their wrongdoing, the breaches were serious and caused harm to the workers concerned.
“The penalties should send a clear message to employers that exploiting vulnerable workers will result in significant financial consequences.
"These workers were reliant on their employer to meet basic minimum employment standards. Instead, they were underpaid, had unlawful deductions made from their wages and were denied lawful leave entitlements.”
Begum said the extent and duration of the breaches created unnecessary stress and hardship for the affected employees.
“This was sustained and egregious exploitation, with one employee owed more than $78,500, including $49,000 in unpaid wages and a further $11,000 in unlawful deductions for rent, loans and other items.
"The ERA recognised the significant power imbalance that existed in this employment relationship. Employers who exploit vulnerable workers and ignore minimum employment standards can expect the Labour Inspectorate to take enforcement action."
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