Bay of Plenty kiwifruit firm Asad Horticulture Ltd fined $100,000 for underpaying workers

A labour supply firm has been fined $100,000 for underpaying kiwifruit workers in Bay of Plenty. Photo / 123RF

A labour supply company to the Bay of Plenty kiwifruit industry and its sole director have been fined $100,000 after underpaying three employees over several years.

The Employment Relations Authority has ordered Asad Horticulture Limited, which is now in liquidation, to pay $70,000 for breaching minimum employment standards and for being in arrears with paying the employees’ holiday pay entitlements.

An Employment NZ statement said sole director and shareholder Mohammad Asaduzzaman must pay $30,000 for the same breaches.

The penalties will be paid in quarterly instalments of $5000 each by Asad Horticulture and Asaduzzaman.

The Labour Inspector said the workers were vulnerable temporary visa holders.

Significant arrears were owed and Asad Horticulture and Asaduzzaman’s recording-keeping breaches were “systemic”, the statement said.

Following an agreement with the Labour Inspectorate, the company and Asaduzzaman paid the affected employees $45,170.13 in arrears.

Asad Horticulture was placed into liquidation on August 14.

Kevin Finnegan, Ministry of Business Innovation and Employment lead inspector, strategic alignment and primary sector, said it was encouraging that Asad Horticulture and its owner had taken responsibility for the breaches.

“However, it is disappointing that it took a full three years before full payment of the arrears was made.

“Nevertheless, this is a positive outcome because the Labour Inspector in this case showed tenacity to achieve the right outcome for the complainants, despite the time it took.”

ERA member Andrew Dallas said Asad and Asaduzzaman’s willingness to participate in mediation, agree upon arrears of wages and pay these in full were mitigating factors in reaching his decision on the penalties.

However, full payment was not achieved for three years after the complaint was made and should be considered “late performance of duty” rather than being seen as an act of contrition.

Dallas denied an application for permanent non-publication orders in favour of Asad and Asaduzzaman.

“The Authority is bound by the presumption of ‘open justice’. While there may be occasions where this presumption can and, indeed, probably should be departed from, this is not one of them.”

Finnegan said while the Labour Inspectorate prefers to support employers to get it right and be compliant when they breached employment standards, “we do not hesitate to take enforcement action when it is justified, as it was in this case where three vulnerable workers were owed over $40,000 in holiday entitlements”.

“We appreciate the fact that non-publication orders were declined as the Inspectorate works closely with Zespri to ensure their supply chain remains free of non-compliant contractors and growers to ensure there is fairness for all those operating in the kiwifruit sector.”