The worker paid Hariom Horticulture Limited owner Tarun Gautam $23,324 into bank accounts in India and New Zealand during December 2022 and early 2023.
He was one of five workers employed by the company, which failed to comply with minimum employment standards, including:
- Failure to keep wage, time, holiday and leave records
- Failure to pay minimum wage rates
- Requiring a worker to pay a premium to secure employment.
ERA Member Claire English ordered that each of the five workers receive $5,000 from the penalty amount, with the worker who paid the premium receiving a further $5,000. The remaining $10,000 will be paid to the Crown.
The company, which operated throughout the Bay of Plenty region, and Mr Gautam also owe three of the workers a total of $8,203 in wages arrears.
The case was taken to the ERA following an eight-month investigation by the Labour Inspectorate, which started in May 2024 after complaints from two of the workers. Two additional complaints were received during the investigation.
Kevin Finnegan, Lead Inspector Strategic Alignment for the Labour Inspectorate, said he hoped other companies, particularly those operating in the kiwifruit and wider horticulture sectors, would take note of the penalty award.
“The vast majority of orchard owners and labour hire operators working in the kiwifruit industry comply with employment standards and take good care of their workers. But there are some who believe it is acceptable to exploit vulnerable people to gain unfair competitive advantage.”
Mr Finnegan said a Labour Inspectorate-led operation in the Bay of Plenty last month, dubbed Operation Indigo, was specifically planned to identify and clamp down on serious non-compliant behaviour in the kiwifruit sector such as had been identified at Hariom Horticulture Limited.
The integrated operation involved regulatory teams from the Inspectorate and Immigration Compliance and Investigations focusing on employers identified as high-risk in the sector.
During the four-day operation labour inspectors and compliance officers visited work sites operated by 21 companies, including labour hire operators and orchard owners.
Information gathered is now being assessed to determine whether enforcement action may be necessary.
“Through operations like this we are able to identify those who break the law and then take appropriate action,” Mr Finnegan said. “We want all players in this sector to operate on a level-playing field.”
In her determination, Ms English said all the affected workers were employed under work visas that required them to work for Hariom Horticulture Limited, making them dependent, and increasing their vulnerability.
“This is a matter where the imbalance of power has allowed an experienced local businessman to employ multiple vulnerable immigrants without providing them with minimum employment entitlements.”