Auckland restaurant owner to pay $125,000 over worker exploitation

The former chef of an Auckland Curry Leaf Indian Restaurant was found to have been exploited by their employer. Photo / 123RF

An Auckland restaurant owner who exploited a former migrant employee's vulnerable position has been ordered to pay $125,000.

The Employment Relations Authority (ERA) ordered Madhan Singh Bisht to pay his former chef $75,026.18 in unpaid minimum wage, leave and holiday pay.

Bisht was also ordered to pay $50,000 in penalties for failing to meet minimum employment standards, the Ministry of Business, Innovation and Employment said.

Bisht is the sole director of Kiran Cuisine Limited, which operates Curry Leaf Indian Restaurant.

The Labour Inspectorate brought the case to the ERA following a complaint from the victim.

The employee was in the vulnerable position of relying on Bisht for his employment in regards to his immigration status, the Inspectorate's investigation found.

According to the investigation, the employee was denied leave on many occasions during their three-year employment and was forced to come into work despite being sick.

The investigation also found the former chef consistently worked an average of between 60 and 70 hours each week during their employment, despite being contracted and paid for up to 36 hours.

Labour Inspectorate Northern Regional Manager David Milne labelled Bisht's actions appalling and an abuse of power.

"This case demonstrates that employment law isn't just about rules for rules' sake, but exercising basic humanity to workers in New Zealand.

"The entitlements denied to this employee were appalling, and a substantial abuse of the power imbalance between employer and employee."

Kiran Cuisine Limited has been liquidated since the breaches took place, though Bisht, as director, is still liable for the charges.

The crackdown on migrant worker exploitation continues with a spate of cases coming to light lately.

Last week a Papakura liquor store and its director were found to have been underpaying four staff to the combined sum of $97,361.66. The store and its director were fined $50,000 and $20,000 respectively.

And last month Amar Deep Singh – a former owner of an Indian restaurant chain in Christchurch – was banned from being an employer and ordered to pay almost half a million dollars after the exploitation of eight workers in serious breaches of the Minimum Wage Act 1983, which included the completion of false time sheets leading to underpayment.

Immigration New Zealand (INZ) has also filed charges last week against a third employer over the use of unlawful migrant labour in the building and construction sector in Auckland.

As of July 1, 2021, new measures have come into force to help combat migrant worker exploitation, including:

• A new visa to support migrants to leave exploitative situations quickly and remain lawfully in New Zealand.

• A dedicated 0800 number (0800 20 00 88) and web form to make it easier to report migrant exploitation and ensure complaints are assessed quickly.