Horticulture labour contracting business Binde Enterprises Limited ordered to pay $428,000

Binde Enterprises Limited, who worked on a vegetable farm in Bombay Hills, has been faced with the large sum following a Labour Inspectorate investigation. Photo / File

A horticulture labour contracting business has been ordered to pay $428,000 for serious employment law breaches, including failing to pay minimum wage or provide holiday pay.

Binde Enterprises Limited, who worked on a vegetable farm in Bombay Hills, has been faced with the large sum following a Labour Inspectorate investigation.

The business must pay $220,000 in penalties and $208,184 in arrears to its 75 employees by the Employment Relations Authority (ERA) for its failure to pay minimum wage, provide holiday pay, or keep accurate wage or time records.

Labour Inspectorate regional manager Kevin Finnegan said they had zero tolerance for labour contractors who failed to meet the clear standards set out in New Zealand employment law.

"Taking advantage of vulnerable workers such as migrants, who may not know what their rights are in New Zealand, is taken very seriously by both the Inspectorate and Immigration New Zealand."

Finnegan said there would be severe consequences.

Concerns about Binde Enterprises were first raised by the Inspectorate during a visit to a Sutherland Produce Limited farm on in April last year, during one of their proactive investigations into the horticulture industry.

Interviews with several of Binde's employees on the Sutherland Produce Limited farm - where Binde held an exclusive labour supply agreement - led to the Inspectorate launching an investigation into the business's compliance with employment law.

Through further interviews with Binde's employees and an analysis of records provided by Sutherland, the Labour Inspectorate built a body of evidence labelled "overwhelming" and a "compelling case of migrant labour exploitation" by the ERA.

Sutherland pleaded guilty last year to four charges under the Immigration Act 2009 for allowing persons not entitled to work in its service, work, and was fined $7500.

"Not providing your employees with their basic legal entitlements such as a minimum wage or holiday pay, or keep employment records, is simply not acceptable."

Finnegan said the case reinforces the importance for horticulturalists to ensure
contractors they bring on to their property are meeting employment standard.

"Those who use contract labour should keep in mind if the price is too good someone is being short changed. By not undertaking due diligence they risk their brand, or even potential legal liability.

"This sort of behaviour also undermines the confidence of consumers when making a purchasing decision, that they are not endorsing any form of exploitation."

The Ministry of Business, Innovation and Employment encouraged anyone concerned about the employment situation of themselves or someone they know to call its contact centre on 0800 20 90 20, where their concerns would be handled in a safe environment.