New Zealand regulator fines recruitment firm for underpaying workers
New Zealand regulator fines recruitment firm for underpaying workers
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New Zealand’s Employment Relations Authority fined a kiwifruit recruitment firm NZD 100,000 (USD 58,380) and its sole director for underpaying three employees over several years.
Asad Horticulture Limited, now in liquidation, was ordered to pay NZD 70,000 (USD 40,862) for breaching minimum employment standards and for being in debt with paying the employees’ holiday pay entitlements. At the same time, sole director and shareholder Mohammad Asaduzzaman must pay NZD 30,000 (USD 19,227) for the same breaches.
The labour inspector, part of New Zealand’s employment services branch, said the workers were temporary visa holders and, as such, were vulnerable. The debts owed were significant, and Asad Horticulture and Asaduzzaman’s record-keeping breaches were “systemic.”
Under an agreement with the Labour Inspectorate of New Zealand, the company and Asaduzzaman have reimbursed the affected employees NZD 45,170.13 (USD 26,368) in back pay.
Asad Horticulture Ltd was placed into liquidation on 14 August 2024.
SIA reached out to the Employment Relations Authority for further comment. Asad Horticulture’s website is no longer working as the company is in liquidation and could not be reached.
In a statement to SIA, Nikki Sumner, Director, Regulatory and Advisory Services, said, “The Employment Relations Authority is not able to comment on specific cases before the Authority, or share contact information.”
Kevin Finnegan, lead inspector, strategic alignment and primary sector lead, said it was encouraging that Asad Horticulture Ltd and its owner had taken responsibility for the breaches.
“It is disappointing that it took a full three years before full payment of the arrears was made,” Finnegan said in a press release, “Nevertheless, this is a positive outcome because the labour inspector in this case showed tenacity to achieve the right outcome for the complainants, despite the time it took.”