The restaurant, Well Sushi, was previously ordered to pay the former employee, who was in New Zealand on a work visa, NZD $53,940.03 in wage arrears. This has since been paid to the worker who is now a permanent resident of New Zealand.
The breaches, which Well Sushi acknowledged, included:
- failing to keep accurate wage and time records
- not paying the minimum wage
- not providing the full annual holiday entitlement
- failing to pay time and a half for work on public holidays
- not paying for sick leave taken.
In seeking penalties for the breaches, the labour inspector involved in the case said Well Sushi had fallen short of the good behaviour expected of employers. “Well Sushi’s conduct has undermined the obligations of mutual trust and confidence that should exist in any employment relationship.”
The inspector noted the affected employee was a migrant worker on a work visa, sponsored by the restaurant making him “inherently vulnerable” particularly due to little personal experience of New Zealand employment standards and little ready access to support and information about those standards or enforcement of them.
The restaurant argued that penalties should not be imposed saying the breaches were partly “inadvertent”.
ERA Member Davinia Tan said although the parties had resolved the dispute, “engaging in a settlement process does not achieve the objective of deterrence. Well Sushi’s conduct fell below the minimum standards of good faith, mutual trust and confidence.”
Taahera Begum, Labour Inspectorate Investigations Manager for the central/southern region, said while it was pleasing Well Sushi had paid the worker the arrears owed, it was important employers realised breaching employment standards could have serious consequences.
“The fact that the wage arrears in this case amounted to more than $50,000 is a sign of how much this employee was disadvantaged by his employer, someone he no doubt trusted."
“The Labour Inspectorate views exploitation as among the most serious breaches of employment standards. Exploitation of vulnerable workers as occurred in this case, undermines the labour market by undercutting fair competition and causes great hardship to those affected.”