Paeroa company fined $159,000 for exploiting migrant workers

The organisation reportedly underpaid migrant workers wages and entitlements

Paeroa company fined $159,000 for exploiting migrant workers

A business in Paeroa has been fined more than $159,000 for exploiting migrant workers and providing false information to Immigration New Zealand (INZ).

The organisation, run by two directors, was found to have subjected two Indian nationals under the Accredited Employer Work Visa (AEWV) to unlawful employment practices.

According to INZ, the workers were required to work extremely long hours, in some cases up to 14 hours a day, seven days a week, even on public holidays, without being paid their entitlements.  

One worker was also subjected to deductions totalling over $6,000, which his employer disguised as loan repayments.  

The company hid the exploitation by submitting false records and documentation to INZ, including fabricated rosters and payslips. The company also completed employment modules on behalf of the employees.  

Calculations by the Labour Inspector revealed that the employees were underpaid by $158,000 in wages and entitlements.  

"The callous exploitation of vulnerable migrants and the deliberate provision of false information to INZ is not just unethical, it's criminal," said Jason Perry, National Manager Investigations, in a statement.  

The company was slapped with five charges of exploitation of temporary workers and two charges of provision of false or misleading information to INZ during an investigation and in an application to renew employer accreditation.  

The company pleaded guilty in court and was ordered to pay reparations of $18,684.72 and emotional harm payments of $5,000 to the workers.  

According to INZ, a total of $140,000 of unpaid wages and entitlements was also handed to the victims before sentencing.  

"This is a good outcome for INZ and, most importantly, for the victims," Perry said. "They have received significant reparation and emotional harm payments, and this case reinforces that exploitation will not be tolerated in New Zealand." 

Meanwhile, Perry added that they will continue to work with partner agencies to hold employers who are exploiting migrant workers accountable.

"Maintaining the integrity of our immigration system is critical to protecting both migrants and the wider public," he said.

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