Auckland restaurant fined for non-compliance

A restaurant in Auckland has been ordered to pay $12,000 for failing to pay wages and holiday pay, following action taken by the Ministry of Business, Innovation and Employment’s Labour Inspectorate.

The Employment Relations Authority handed down the penalty under the Employment Relations Act after Beagle Brothers Limited, trading as Genji Ponsonby, underpaid two migrant workers.

Labour Inspectorate Northern Regional manager David Milne says the penalty is significant and it sends a clear signal that employers must pay their workers according to New Zealand employment law or they will be prosecuted and fined.

"The Authority also ordered the company to pay the former employees more than $10,000 in wages and holiday pay arrears.

"Unfortunately this is not the first time that we have had dealings with the owner of this business, William Tan. He has also previously been before the Authority and the Employment Court," says David Milne.

In its determination issued last month the Authority referred to a recent Employment Court case involving Mr Tan where he was penalised $6,000 and ordered to repay $7,000 which was charged as a premium for employment under the Wages Protection Act. The Court commented on the vulnerability of migrant workers and that there had been an upswing in cases involving the failure to comply with minimum employment standards for these workers.

"Underpaid and overworked migrant employees are an increasing focus for the Ministry’s Labour Inspectorate. The exploitation of migrant workers is not welcome here and breaches New Zealand law.

"Business owners must ensure they are acting lawfully and that each employee is receiving their minimum entitlements. Those that do not will be subject to enforcement action, which can include penalties of up to $10,000 for individuals and $20,000 for companies," says David Milne.