Auckland restaurant comes under the hammer for failing to pay wages

Beagle Brothers Ltd, trading as Japanese restaurant Genji Ponsonby, was found to have underpaid two migrant workers.

An Auckland restaurant has been ordered to pay $22,000 for failing to pay wages and holiday pay to migrant workers, in the latest action taken against its owner.

Beagle Brothers Ltd, trading as Japanese restaurant Genji Ponsonby, was found by Ministry of Business, Innovation and Employment (MBIE) labour inspectors to have underpaid two migrant workers.

It took the company to the Employment Relations Authority (ERA), which handed down a penalty of $12,000, and ordered it to pay the former employees $10,00 in wages.

David Milne, MBIE's labour inspectorate northern regional manager, said the fine was significant and sent a clear signal that employers must pay their workers according to New Zealand employment law or they will be prosecuted.

"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," he said.

In its determination the ERA referred to an Employment Court case from earlier this year in which Mr Tan was penalised $6000 under the Wage Protection Act and ordered to repay $7000 to a family who had paid him in exchange for a job offer for their daughter to help her emigrate from China to New Zealand.

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," Mr Milne said.

"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."