Admits to underpaying staff and forcing them to repay part of salaries
A Tokoroa kebab and pizza shop owner has pleaded guilty to 18 charges of worker exploitation, admitting to grossly underpaying migrant employees and forcing them to repay part of their salaries.
The charges, laid under the Holidays Act, Minimum Wage Act, and Wage Protection Act, involve three workers who are collectively owed approximately $160,000, The New Zealand Herald reported.
Ercan Ates, owner of Turkish Kebabs and Pizza Express on Swanston St in Tokoroa, was responsible for all day-to-day operations, including hiring, rostering, and paying employees. The offences took place over several years, affecting migrant workers on work visas employed between 2017 and 2021.
One of the workers, Kiranjot Kaur, was employed for more than three years and is owed nearly $117,000. Her contract initially stipulated a 30-hour workweek at $17.50 an hour, later increased to $26 per hour when she was promoted to store manager in May 2018.
However, Kaur regularly worked 66-hour weeks and was never paid more than $860 a week, far below what she was entitled to.
According to the Herald's report, Kaur did not receive any paid holidays during her employment, despite being entitled to four weeks per year.
Another worker, Rupinder Kaur, was employed for 10 months and is owed just over $31,000.
Contracted to work 40 hours a week at $23.50 per hour, later raised to $25.60 when she was promoted, she also worked 66-hour weeks but was only paid for 40 hours. Her hours were reduced to 50 hours a week on a doctor's recommendation, yet she was paid for even fewer hours, between 25 and 35 weekly.
She left in May 2021, but did not receive a gross wage worth over $1,204 and weekly wages between $640 and $896 when her days were reduced.
A third worker, Sunita Rani, was employed for four months and is owed nearly $12,700. She was contracted for a 40-hour workweek at $25.50 per hour but worked 66-hour weeks and was only paid for 40 hours.
Rani raised concerns with Ates, but he told her to work hard if she wanted his support for her visa application, as reported by The New Zealand Herald.
Meanwhile, Ates further exploited the workers by demanding they repay portions of their wages.
Shortly after promoting Kiranjot Kaur, Ates told her he could no longer afford her increased pay and asked her to repay $150 weekly, disguising these payments as grocery purchases for the business.
Ates also made a similar demand to Rupinder Kaur, where he even threatened to have her visa revoked if she refused.
A repayment demand was also sought from Rani after she started working for Ates, who asked Rani for $127 weekly under the guise of "rent."
Ates appeared at the Rotorua District Court to plead guilty to the charges. He and his company are scheduled for sentencing on February 17 next year.
