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A Lower Hutt sushi restaurant has been fined $30,000 for exploiting a vulnerable migrant worker who was owed more than $50,000 in wage arrears.
The Employment Relations Authority (ERA) had previously ordered Well Sushi to pay the former employee, who was on a work visa sponsored by the restaurant, $53,940in unpaid wages.
Well Sushi was found to have breached multiple employment standards including failing to keep accurate wage and time records, not paying the minimum wage or full annual holiday entitlements and not paying sick leave when taken.
Though the wages have since been paid, the ERA said 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,” said ERA member Davinia Tan.
Yi Jiang is the sole director and shareholder of Well Sushi Limited, Companies Office records show.
Well Sushi argued that penalties should not be imposed saying the breaches were partly “inadvertent”.
The labour inspector involved in the case said the affected employee was “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.
“Well Sushi’s conduct has undermined the obligations of mutual trust and confidence that should exist in any employment relationship.”
The worker is now a permanent resident of New Zealand.
Taahera Begum, Labour Inspectorate investigations manager for the central/southern region, warned employers that 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,” Begum said.
“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.”
