A kiwifruit company and its director have been ordered to pay $135,000 in penalties after the Employment Relations Authority found they breached minimum employment standards affecting four vulnerable migrant workers.
As per 1News, Dosanjh Horticulture Limited, based in Te Puke, was fined $90,000 while director Jatinder Singh was ordered to pay $45,000. The Authority also ruled that $20,000 of the penalties be paid directly to the affected workers.
The case involved what officials described as a wage “banking” arrangement, where workers were required to work unpaid hours to offset previous paid time, along with failures to keep accurate employment records and correctly calculate leave entitlements.
One worker was also required to pay $4500 to secure employment with the company.
As per local media, Employment Relations Authority member Sarah Kennedy-Martin said the breaches were serious and had a disproportionate impact on migrant workers.
“Migrant workers are entitled to be treated with respect in the New Zealand workforce and they can be particularly vulnerable because of their migrant status,” she said.
“The workers’ dependency on the employer was high and the employer controlled all aspects of the employment relationship. This included the structuring of payroll and record-keeping systems to obscure underpayments, coupled with unlawful deductions and failure to meet basic entitlements such as sick leave and public holiday pay.”
The total arrears owed to the four workers was $61,312, which the company agreed to repay before the hearing.
The Labour Inspectorate became involved after complaints were raised with Zespri, the industry body that markets kiwifruit internationally. Following its investigation, Zespri cancelled the company’s compliance certification, effectively preventing it from operating within the industry supply chain.
Labour Inspectorate lead inspector Kevin Finnegan said the outcome should serve as a warning to employers across the sector.
“This company and those who owned it are well known in the kiwifruit industry, which makes their flouting of minimum employment standards all the more unacceptable,” he said.
“These were vulnerable workers and they were entitled to be paid correctly and to have accurate employment records maintained.”
He added that compliance failures carry wider consequences beyond financial penalties.
“Not only did they lose the ability to operate in the kiwifruit sector, they have also been ordered to pay significant penalties. This should serve as a warning to others in the industry.”
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