Fine for underpaying workers

CHRISTCHURCH: A Christchurch liquor outlet employer has been fined for underpaying migrant workers.

The Employment Relations Authority ordered Nekita Enterprises to pay $90,000, and director Harjit Singh to pay a further $35,000.

This is on top of $21,390 already received by four former employees.

Mr Singh’s bottle stores were investigated by the Labour Inspectorate after complaints they failed to pay migrant employees the minimum wage or keep accurate records.

They were found to have deliberately operated a dual payroll system in relation to four employees over four years, where only part of the employees’ hours were recorded and paid for.

The remaining hours were paid in cash at a reduced rate, meaning the employees were not receiving the minimum wage for all the hours they worked.

Authority spokeswoman Loua Ward said it found the breaches were deliberate and systematic and involved vulnerable migrant employees.

While Mr Singh maintained at the hearing that he did not know the dual payment system was operating, the ERA was unconvinced and found he was involved in the breaches.

Mrs Ward said the authority was pleased Super Liquor had cancelled the contracts for premises run by Nekita Enterprises.

‘‘The Labour Inspectorate is disappointed by noncompliance in the liquor retail sector, which has been a focus for the inspectorate as part of our retail sector strategy.

‘‘This case shows that exploitation is not a sustainable business model. Personal liability means the individual responsible for the exploitation will be liable for penalties even if they close their business.’’ — The New Zealand Herald