'Penalties need to be set at a level that deters others from breaching employment standards,' ERA says
A restaurant and its owner have been penalised with a combined $130,000 by the Employment Relations Authority (ERA) for breaching multiple employment standards, including exploiting its workers.
The ERA ordered penalties of $90,000 against SSM Investments Limited, and another $40,000 for its owner, Shazneen Shariza Khan.
It found that the business breached multiple employment standards, including failing to pay five workers minimum wage, not keeping accurate wages and times records, and failing to keep holidays and leave records.
It also failed to pay employees sick leave, holiday, and public holiday pay, as well as made unlawful deductions from employees' wages.
According to the ERA, Khan was personally involved in the breaches and therefore liable for penalties.
"Penalties need to be set at a level that deters others from breaching employment standards," the ERA ruled. "Mrs Khan's personal liability for penalties as a person involved will reinforce that."
Underpayments against workers
The penalties come after the Labour Inspectorate found that SSM underpaid five workers in Cromwell and Auckland a total of $147,001, with individual arrears reaching up to over $78,500.
"This was sustained and egregious exploitation with one employee owed more than NZD $78,500, including $49,000 in unpaid wages and a further $11,000 in unlawful deductions for rent, loans, and other items," said Taehara Begum, Labour Inspectorate Investigations Manager for the Central and Southern regions, in a statement.
SSM and Khan agreed they were liable for the underpayments, which were eventually repaid to the affected workers after funds to cover them were secured in October 2025.
"The penalties should send a clear message to employers that exploiting vulnerable workers will result in significant financial consequences," Begum said.
"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."
