Auckland restaurant The Indian Taste Limited has been ordered to pay NZD 377,000 by the ERA for exploiting migrant workers.
An Auckland restaurant has been ordered by the Employment Relations Authority (ERA) to pay almost NZD 200,000 in wage arrears to seven employees, while the company’s sole director was penalised NZD 177,300 for exploiting the workers.
The penalties come following a nine-month-long Labour Inspectorate investigation into allegations of serious employment breaches.
The restaurant, The Indian Taste Limited, and its former director, Krishna Khandelwal, were found to have breached multiple employment standards, including failing to pay the minimum wage, making unlawful deductions from wages, failing to pay annual holiday and alternative holiday entitlements, requiring workers to pay premiums to secure employment, and failing to keep accurate wage and leave records.
Employees were regularly made to work between 60 and 90 hours per week but were only paid for around 30 hours. Some were also required to work for one to two weeks unpaid when they first started.
Labour Inspectorate Migrant Exploitation Manager Sam Mills said the Inspectorate received multiple complaints between March and December 2024 alleging serious breaches of employment standards.
“This was an egregious case of migrant exploitation where vulnerable workers, many with limited English and little understanding of New Zealand employment law, were ruthlessly exploited for the personal gain of the company and its owner,” said Mills.
“These breaches were persistent, deliberate and designed to extract labour at an unlawful discount.”
Mills added that the penalty is significant and should serve as a clear deterrent to employers who seek to take advantage of vulnerable people trying to build a life in New Zealand. He said it was a clear message to employers and individual directors that this kind of business behaviour is unacceptable.
ERA Member Matthew Piper ordered The Indian Taste Ltd to pay NZD 199,529 in wage arrears to the employees. Khandelwal was ordered to pay penalties of NZD 177,300, with NZD 35,000 to be distributed equally among the seven workers.
“Mr Khandelwal was in control of the actions of The Indian Taste during the relevant period and engaged in deliberate and exploitative behaviours which adversely affected multiple migrant workers,” said Piper.
“As the shareholder of The Indian Taste, Mr Khandelwal received a financial benefit for his actions by underpaying workers and in doing so also failed to compete fairly with other businesses providing similar products and who complied with the law.”
Piper added that the harm extended well beyond unpaid wages.
“The financial harm was severe. They had to borrow money at high interest, take personal loans, and many were unable to support families overseas.”
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