Cafe boss who took back wages ordered to pay $14k to employee

The boss of a central Auckland cafe told his employee that he needed her to pay back her wages as the business was not profitable. Photo / File

The boss of a central Auckland cafe has been ordered to pay more than $14,000 in penalties and wages arrears after forcing a worker to give back part of her pay-cheque or lose her work visa.

Viz Cafe director Bin Zhang, made his employee, Fei Teng, pay back $200 a week in cash from wages debited to her bank account, the Employment Relations Authority (ERA) found.

It investigated the case after a complaint by the Ministry of Business, Innovation and Employment's labour inspectorate.

The employee was told the business, located on Fort St, was not profitable and payments were needed in order for her to keep her work visa, labour inspectorate northern region manager David Milne said.

"The employee was required to make a total of 17 such payments over a six-month period, with the deductions bringing her net income to well below the minimum wage.

"The café director, Mr Zhang, took advantage of a vulnerable employee through deliberate and calculated breaches of employment laws."

In its determination the ERA ordered Mr Zhang is to pay $6120 in wage arrears, as well as a $5000 penalty for breaching the Wages Protection Act 1983. It also ordered $2000 of the penalty to be paid to the employee, rather than the Crown.

Mr Zhang is to pay an additional $3000 penalty for failing to comply with an Improvement Notice issued by the Labour Inspectorate.

Mr Milne said the case served as "a clear warning to other employers who breach minimum labour standards".

"The Labour Inspectorate will not tolerate these breaches and will ensure accountability for them."

* Anyone in this situation, or who knows of people in this situation, is encouraged to contact MBIE on 0800 20 90 20.