The Employment Relations Authority (ERA) has ordered Indo Kiwi Horticulture Limited to pay $176,000 in penalties and former director Boota Singh Dhillon to pay a further $88,000 in penalties. The company was also ordered to repay more than $152,000 in wage arrears, holiday pay arrears and unlawful premiums to 4 former migrant workers.
ERA member Jeremy Lynch ordered that each of the 4 complainants receive $33,000 from the penalties imposed with the remainder paid to the Crown.
Indo Kiwi Horticulture supplied labour to kiwifruit orchards in the Bay of Plenty. Mr Dhillon was the company’s sole director and shareholder during the period the breaches occurred. He sold the company in October 2024 and it is no longer operating.
The Labour Inspectorate began investigating the company after receiving a complaint in July 2024.
Workers denied minimum entitlements
The investigation found that 4 Indian nationals employed on employer-specific visas were underpaid and denied minimum employment entitlements.
It was also found that 3 of the workers had paid unlawful premiums totalling more than $65,000, with some payments made to bank accounts linked to Mr Dhillon's family members in India.
Strong message on migrant exploitation
Labour Inspectorate Migrant Exploitation Manager Natalie Gardiner said the case highlighted the vulnerability of migrant workers and the serious consequences for employers who seek to profit from that vulnerability.
"New Zealand law is clear. Employers cannot demand or receive payments from workers in exchange for employment. Exploiting workers for financial gain is unacceptable.
“The penalties ordered against both Indo Kiwi Horticulture Limited and Boota Singh Dhillon, together with the substantial payments directed to the affected workers, send a strong message about the seriousness of migrant exploitation and the importance of compliance with employment standards,” said Ms Gardiner.
Employer gained unfair advantage
Mr Lynch said Indo Kiwi Horticulture had gained an unfair advantage over its competitors by withholding wages and holiday pay to which the workers were entitled.
“The complainants were all Indian nationals who had come to New Zealand in search of employment opportunities. There was an inherent power imbalance in the employer/employee relationship, which was amplified by the fact the complainants were relying on the support of their employer in respect of their immigration status.
“Throughout the course of their employment, the complainants were on employer specific work visas, to work only for Indo Kiwi. In the circumstances of this matter, this can only have increased the complainants’ vulnerability.”
Mr Lynch said an appropriate message needed to be sent to employers, persons involved in breaches of employment standards, and any others who may be tempted to act in a similar manner, that non-compliance will not be tolerated.