ERA Member Philip Cheyne ordered SSM Investments Limited to pay penalties of NZD $90,000 and owner Shazneen Shariza Khan to pay penalties of NZD $40,000. He said the conduct "undermines implied trust and confidence obligations and statutory good faith requirements" and "demonstrates the inherent inequity of power in the employment relationship and undermines employment standards".
In his determination dealing with the arrears, Mr Cheyne found the business had breached multiple employment standards, including:
- failing to pay the 5 workers the minimum wage
- not keeping accurate wages and times records
- failing to keep holidays and leave records
- failing to pay the employees sick leave, holiday and public holiday pay
- making unlawful deductions from employees’ wages.
Mr Cheyne also found Ms Khan was personally involved in the breaches and therefore liable for penalties.
The case follows a Labour Inspectorate investigation prompted by complaints from employees of the business’s Cromwell branch.
After a part-heard Investigation Meeting at the ERA the business, SSM Investments Limited and its sole director Ms Khan, agreed they were liable for NZD $147,001 in arrears owed to 5 workers.
The workers were underpaid a total of NZD $147,001, with individual arrears ranging from more than $7,000 to over $78,500. The breaches affected workers employed across the business's Cromwell and Auckland operations.
Funds to cover the arrears were secured after a freezing order in October 2025 and held in trust. These funds have been paid to the affected workers.
Labour Inspectorate Investigations Manager for the Central and Southern regions, Taahera Begum, said that while the business and Ms Khan had acknowledged their wrongdoing, the breaches were serious and caused harm to the workers concerned.
“The penalties should send a clear message to employers that exploiting vulnerable workers will result in significant financial consequences.
"These workers were reliant on their employer to meet basic minimum employment standards. Instead, they were underpaid, had unlawful deductions made from their wages and were denied lawful leave entitlements.”
Ms Begum said the extent and duration of the breaches created unnecessary stress and hardship for the affected employees.
“This was sustained and egregious exploitation with 1 employee owed more than NZD $78,500, including $49,000 in unpaid wages and a further $11,000 in unlawful deductions for rent, loans and other items."
"The ERA recognised the significant power imbalance that existed in this employment relationship. Employers who exploit vulnerable workers and ignore minimum employment standards can expect the Labour Inspectorate to take enforcement action."