An Indian-origin kiwifruit employer has been fined more than $40,000 after charging a migrant worker over $23,000 to secure a job and failing to meet basic employment standards, in a case described as highlighting the vulnerability of migrant workers in the horticulture sector.
The case, brought before the Employment Relations Authority, involved Tarun Gautam and Hariom Horticulture Ltd, following an eight-month Labour Inspectorate investigation prompted by complaints from workers.
As per NZ Herald, employee Jagmeet Singh, told investigators he paid more than $23,300 to secure employment with the company, with multiple payments made into both New Zealand and Indian bank accounts.
It is further reported that the payments allegedly included funds sent in Indian rupees and New Zealand dollars, some of which were directed to accounts linked to Gautam and his family members.
However, after beginning work, Singh and other employees were not paid minimum wage, did not receive annual leave entitlements, and were not paid holiday pay.
Authority member Claire English found that five employees — Jagmeet Singh, Jai Shiva, Vinayak Chopra, Raman Shekhar and Phoolmeet Kaur — were dependent on the employer for visa-related work, which left them particularly vulnerable to exploitation.
“This is a matter where the imbalance of power has allowed an experienced local businessman to employ multiple vulnerable immigrants without providing them with minimum employment entitlements,” English said.
The Authority found multiple breaches, including failure to keep proper employment records, non-payment of holiday entitlements, underpayment of wages, and the unlawful receipt of employment premiums.
As per NZ Herald, Singh was also found to have paid additional sums to secure employment, including a final payment of $11,276 into a New Zealand bank account linked to the employer.
The Authority ruled this amount could be reimbursed, but noted it was unable to order repayment for other disputed offshore transactions due to evidentiary limitations.
In total, it is reported that Gautam and his company were ordered to pay $40,000 in penalties. Each of the five affected workers will receive $5,000 in penalties, while Singh will receive an additional $5,000 in recognition of the unlawful job premium paid. The remaining penalties will be paid to the Crown.
Labour Inspectorate official Kevin Finnegan said the case should serve as a warning to employers in the horticulture sector.
“The vast majority of orchard owners and labour hire operators working in the kiwifruit industry comply with employment standards and take good care of their workers,” he said.
“But there are some who believe it is acceptable to exploit vulnerable people to gain unfair competitive advantage.”
The ruling comes as part of broader enforcement activity in the sector, including recent compliance checks across multiple Bay of Plenty horticulture businesses aimed at identifying breaches of employment law.
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