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The owners of a bakery in King Country were ordered to pay $ 90,000 for exploiting two migrant workers who sometimes worked about 80 hours a week.
The couple who own The Bakehouse Cafe in Taumarunui were ordered by the Labor Court to pay $ 70,000 in fines and $ 20,000 in compensation to the couple.
This is in addition to the $ 36,191 in arrears that employers have already agreed to return to the two employees for non-compliance with minimum wage and vacation pay.
The court ordered owners Sok Hoiring Chhoir and Rattanak Hengfor to pay for violations of minimum labor standards, which included paying their employees less than the minimum wage.
Following an investigation by the Labor Inspectorate, it was discovered that the couple did not keep accurate records of wages, time and vacations and leave for employees. Nor did they pay their employees the minimum wage or their full annual and holiday entitlements.
“In some weeks, they worked a total of 77 hours each, double what was stated in their employment contracts and for less than the minimum wage,” says Stu Lumsden, national manager of the Labor Inspectorate.
“Employees spoke about how they felt cheated and exploited, that they were afraid of losing their jobs, and that the experience was traumatic.
“These two workers were new to the district, spoke English as a second language and did not have extensive support networks. The employer was opportunistic in violating their rights, acknowledging that the employees were not familiar with New Zealand labor laws and their rights and benefits.
