Staff exploitation brings heavy fines

The owners of a Napier restaurant and an Auckland flooring company have both been penalised by the Employment Relations Authority for failing to protect their employeesrights over pay and leave.

The authority (ERA) ordered Napier restaurant Golden Spring Takeaway, owned by Huichan Xu as a sole trader, to pay $30,000 for abusing the rights of two migrant employees.

‘‘The employees worked long hours, seven days a week with no days off for a period of over six months,’’ the Labour Inspectorate’s national manager, Stu Lumsden, said.

A closer look found the takeaway restaurant had breached 10 standards, including failing to retain copies of individual employment agreements, failing to keep wage and time records, and failing to keep holiday and leave records, as required by law.

Initially Xu denied that the pair were employed by her, and gave the inspectorate manufactured records developed once the investigation had begun.

‘‘This is a reminder that migrant workers are a particularly vulnerable section of the workforce, as they’re less likely to be aware of their rights and entitlements and can be concerned regarding their visa status,’’ Lumsden said.

Flooring company Modern Floor and Wall was fined $25,000 for breaching all minimum employment standards for two employees.

The company must pay $15,000 and its sole director, Srinivas Panuganti, was fined $10,000, which must come out of his own pocket.

Lumsden said the employees were even asked to pay a ‘‘premium’’ to the director to retain their employment – ‘‘basically having to pay to have their job’’.

‘‘Businesses should not be making profit at the expense of their employees. It is good to see the ERA is holding not only companies but directors personally culpable for penalties.’’