He liquidated the business - so they court made him personally liable
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An employer who liquidated his company after being penalised nearly $430,000 for exploiting workers, has been made personally liable for the outstanding amount (nearly $120,000).
After a Labour Inspectorate investigation which uncovered nearly $210,000 in wages owed to 75 migrants, the Employment Relations Authority (ERA) has ‘joined’ Jujhar Singh to his previous company Binde Enterprises Ltd.
The employees were working on a vegetable farm in the Bombay Hills and Singh has three months to pay the full outstanding amount.
Kevin Finnegan, labour inspector head of horticulture, said the outcome sends a clear message to employers that if minimum employment standards are breached, closing down the business “will not get its owners or directors off the hook”.
“We will continue to pursue cases like this, targeting those who might be hiding behind a company name or failure, or closing it down deliberately to get away with not paying what they owe for their employment breaches.”
Finnegan said incidences of migrant exploitation are a priority for the Labour Inspectorate, as these workers make up a particularly vulnerable sub-section of the workforce.
“They have the same rights as all other workers in New Zealand, however they are often less aware of their rights and entitlements.
“Not providing your employees with their basic legal entitlements such as minimum wage or holiday pay, or keeping employment records, is simply not acceptable and breaches New Zealand law,” said Finnegan.
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The Labour Inspectorate is also calling for all former workers of Binde Enterprises to come forward, as they may be entitled to wages owed - which can be claimed back.
“We encourage anyone concerned about the employment situation of themselves, or someone they know, to call the contact centre, where their concerns will be handled in a safe environment,” he said.
This is the latest ERA finding in which the Labour Inspectorate has successfully prosecuted the owners of the registered company responsible for employment breaches.