Nelson restaurant to pay $91K

Nelson restaurant to pay $91K after MBIE uncovers worker exploitation

The Employment Relations Authority (ERA) has ordered Taste of Egypt Ltd to pay more than $91,000 for employment law breaches and arrears owed to workers employed in their Nelson restaurant.

The Ministry of Business, Innovation and Employment’s Labour Inspectorate brought the case before the ERA after receiving a complaint from a member of the public concerned about the treatment of staff and their work conditions.

An extensive investigation by the Labour Inspectorate found the employer failed to pay minimum wages, statutory holidays and failed to provide annual leave to two migrant employees from India. The two chefs worked in excess of 70 hours and were only paid for 30. The company also failed to keep adequate time and wage records in accordance with the Employment Act.

The employers also pressured workers to sign false documents by threatening they would lose their jobs and visas.

Labour Inspectorate Regional Manager Kevin Finnegan says exploitation of workers is not acceptable in our society and breaches New Zealand law.

“Migrant workers are a particularly vulnerable section of the workforce and are an increasing focus for the Ministry’s enforcement operations,” he says.

The ERA ordered Taste of Egypt to pay $20,000 in penalties. They were also ordered to repay $64,559 to the workers in minimum wages and holiday pay, and $3,791 in interest. The employer will accrue a further $8.84 per day if the arrears are not repaid by 3 December 2015. A contribution of $3,572 towards MBIE’s costs was also awarded.

“This ruling sends a clear message to employers that failure to comply with the minimum labour standards will not be tolerated,” says Mr Finnegan.
The Ministry encourages anyone in this situation, or who knows of anyone in this situation, to call its contact centre on 0800 20 90 20 where their concerns will be handled in a safe environment.
The ERA determination is available here: http://employment.govt.nz/workplace/determinations/PDF/2015/2015_NZERA_Christchurch_179.pdf

ENDS

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