Firm failed to comply with several aspects of Holidays Act 2003, Employment Relations Act 2000
The Employment Relations Authority (ERA) has imposed penalties totalling $100,000 on Asad Horticulture Limited and its sole director, Mohammad Asaduzzaman, for multiple breaches of employment standards.
The case stems from a complaint lodged in 2020 by Gurjant Singh, a former employee of Asad Horticulture, who alleged that he had not received holiday pay following the termination of his employment.
Following an extensive review of Asad's employment records, the Labour Inspector found that three workers — Singh, Devraj Subedi, and Ranjana Sapkota Subedi — were not paid their rightful holiday entitlements.
The investigation revealed that the kiwifruit labour company had failed to comply with several aspects of the Holidays Act 2003 and the Employment Relations Act 2000. Specifically, there were discrepancies in annual holiday pay, public holiday pay, alternative holiday entitlements, and wage records.
Gurjant Singh was revealed to be owed a total of $23,957.53 in arrears, including annual holiday pay, public holiday pay, and alternative holiday entitlements.
Similarly, Devraj Subedi and Ranjana Sapkota Subedi were found to be underpaid, with total arrears of $19,540.88 and $1,805.46, respectively.
Despite the involved parties reaching an agreement on the arrears, and with Asad Horticulture repaying the outstanding amounts to the employees in full, the Labour Inspector still sought penalties for the breaches.
The ERA agreed with the Labour Inspector's submission that the breaches warranted significant penalties, considering the "obvious financial advantage" gained by Asad Horticulture and its director from the unpaid work.
"The failures resulted in an obvious financial advantage to Asad and Mr. Asaduzzaman, who received labour without having to pay for it fully and properly," the ERA noted in its decision.
After reviewing mitigating factors, including the payment of arrears and participation in mediation, the ERA imposed a total of $100,000 in penalties — $70,000 for Asad Horticulture and $30,000 for Asaduzzaman.
"Taking the submissions of the parties into account and having regard to all the circumstances of the case, it is appropriate to impose significant, but proportionate, penalties," the ERA concluded.
Asad Horticulture, now in liquidation, was also required to make the penalty payments in quarterly instalments, with the first due within 28 days of the ERA's decision.
The ERA also declined the company's application for non-publication orders.
"There is the utmost public interest in compliance with, and the enforcement of, minimum employment standards," the ERA ruled. "Conduct of the type evidenced in this determination should not be shielded from the public gaze by legal nicety."
