Singh was involved in 49 breaches of minimum entitlement provisions by Samra Holdings and three group companies - of which these companies have been similarly banned for two years.
“The penalties are the highest awarded for employment breaches to date and the banning order of three years against the sixth defendant – Sukhdev Singh – is for the longest period of time,” said Stu Lumsden, head of compliance and enforcement, Labour Inspectorate.
“The outcome is the culmination of several years of investigation work by our migrant exploitation team and reflects the seriousness and systemic nature of the offending.
“This was deliberate and sustained exploitation of vulnerable migrants who were reliant on the employer for their jobs and visas. The people involved gained substantial commercial benefit unlawfully by exploiting the employees.”
Samra Holdings operated stores in the Tauranga and Bay of Plenty including Te Puna, Greerton and Paeroa.
Lumsden said due to the serious nature of the breaches, Labour Inspectors applied to the court for freezing orders to be placed on the employers’ assets.
“This was the first time the Inspectorate has applied for freezing orders. This application was approved and later discharged after the employer’s bank guaranteed $3m to be held available for payment of the arrears and any penalties.
“Our inspectors have also gone a step further to ensure this information is shared with our community stakeholders such as the Allied Retail Group who operate Liquor Centre. We understand that our stakeholders have taken further action against Samra Holdings.
“The Inspectorate believes it is in the public interest to know when employers wittingly exploit their employees, so that workers, consumers and suppliers can make an informed decision when dealing with such businesses.”
Singh had previously received an Improvement Notice from the Labour Inspectorate in 2014 for his kiwifruit business.
