Employer withheld pay and entitlements and sought unlawful premiums from migrant workers
A horticulture employer in New Zealand has been ordered to pay more than $250,000 in penalties for the exploitation of four migrant workers.
The Employment Relations Authority (ERA) ordered Indo Kiwi Horticulture Limited to pay $176,000 in penalties, as well as its former director Boota Singh Dhillon to pay a further $88,000, in a ruling earlier this month.
Employer's employment violations
The ERA issued the order after it found that the horticulture employer gained an unfair advantage over its competitors by withholding the wages and holiday pay of the vulnerable migrant workers.
A probe by the Labour Inspectorate also found that three of the four Indian nationals had paid unlawful premiums totalling more than $65,000, with some payments made to bank accounts linked to the family of Dhillon in India.
ERA member Jeremy Lynch, in his ruling, highlighted the vulnerable position of the migrant workers in the case.
"The complainants were all Indian nationals who had come to New Zealand in search of employment opportunities. There was an inherent power imbalance in the employer/employee relationship, which was amplified by the fact the complainants were relying on the support of their employer in respect of their immigration status," Lynch said.
"Throughout the course of their employment, the complainants were on employer-specific work visas, to work only for Indo Kiwi. In the circumstances of this matter, this can only have increased the complainants' vulnerability."
Each of the four complainants in the case will receive $33,000 from the penalties imposed, according to the ERA. They are also set to receive repayments of more than $152,000 in wage arrears, holiday pay arrears, and unlawful premiums.
Zero tolerance for exploitation
In issuing the penalties, the ERA underscored the need to send an "appropriate message" to violating employers and those who want to attempt to make similar breaches.
"The Authority considers that an appropriate message needs to be sent to employers, persons involved in breaches of employment standards, and any others who may be tempted to breach in a similar manner, that non-compliance will not be tolerated," Lynch said.
Labour Inspectorate Migrant Exploitation Manager Natalie Gardiner agreed the penalties will "send a strong message" on the serious need to comply with employment standards.
"New Zealand law is clear. Employers cannot demand or receive payments from workers in exchange for employment. Exploiting workers for financial gain is unacceptable," Gardiner said in a statement.
"The penalties ordered against both Indo Kiwi Horticulture Limited and Boota Singh Dhillon, together with the substantial payments directed to the affected workers, send a strong message about the seriousness of migrant exploitation and the importance of compliance with employment standards."
