28 Jan 2019

Restaurant owner fined for poor treatment of migrant workers

7:27 pm on 28 January 2019

The owner of a Hawke's Bay restaurant has been ordered to pay $30,000 for poor treatment of two migrant workers.

The ERA said employees at the restaurant worked long hours, seven days a week with no days off.

The ERA said employees at the restaurant worked long hours, seven days a week with no days off. Photo: Facebook / Golden Springs Restaurant

Huichan Xu, the owner of Golden Spring Takeaway, has been fined by the Employment Relations Authority for ten breaches.

The Employment Relations Authority [ERA] said her employees worked long hours, seven days a week with no days off for more than six months.

Labour Inspectorate National manager Stu Lumsden said initially Ms Xu denied the pair worked for her and once the investigation began she provided made-up records.

"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," he said.

In a second decision from the ERA, Auckland flooring company Modern Floor and Wall Limited, has been handed a similar fine of $25,000.

The inspectorate found the company and its owner, Srinivas Panuganti, didn't provide two employees minimum wage or holiday pay, or maintain holiday or leave records.

Mr Lumsden said the employees were also asked to pay the director for 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," he said.

Mr Lumsden said the fines sent a strong message that there could be significant penalties for breaching standards.

Read the full Employment Relations Authority decision here.

RNZ understands Ms Xu no longer owns Golden Spring Takeaway.

A director listed on the Companies Office website, Cui Yao Ruan, said she has been running the business since March last year.

Court documents show the exploitation happened between 2016 and 2017.