Heavy penalty for employment law breach in Christchurch

Heavy penalty for employment law breach in Christchurch

Supplied Content
Wellington, October 24, 2019

(From ERA Website)

The Employment Relations Authority (ERA) has ordered the Noori family and their business, Indian Heaven Ltd, to pay $118,799 in penalties for employment law breaches.

Earlier this year, husband and wife Sayed and Najima Noori and their daughter Fatima Noori were ordered to pay $41,688 in minimum wage and holiday pay arrears to seven former employees of two Christchurch restaurants they operated.

This amount is still outstanding and owed in addition to the penalties.

The Noori family had sold the Indian Heaven restaurants and set up a new takeaway business venture, Noori’s NZ Ltd. It is trading as Kabul Kebab and Souvlaki on Selwyn Street, Christchurch. Fatima Noori is listed as the director.

Obligation stands

Labour Inspectorate Regional Manager Jeanie Borsboom said that employers cannot avoid their legal obligations by selling their business.

“Employment law allows Inspectors to pursue employers personally for penalties and money owed to workers, even if their business no longer exists,” she said.

The Nooris are personally liable for $47,199 of the penalties and all of the arrears.

“This determination also sends a strong message that if employers continue to ignore their obligations, including not paying determined wage arrears, they risk significantly higher penalties – in this case nearly three times higher than the arrears owed to the exploited workers.”

Pursuit of money recovery

With the increasing level of penalties and orders for payment of significant arrears to workers, the Labour Inspectorate now uses a dedicated unit to systematically pursue recovery of these monies.

“Consumers also have a role to play in upholding employment standards by voting with their feet. They should consider how businesses treat their employees and meet their obligations before buying from them,” Ms Borsboom said.

MBIE encourages anyone concerned about the employment situation of themselves or someone they know to call its contact centre on 0800 20 90 20, where their concerns will be handled in a safe environment.

Exploitation unacceptable

Exploitation – of any form – is never acceptable, regardless of the reason. It is against the law. Good employers should not be under-cut by those who exploit workers, and exploited workers should feel safe to report exploitation and have confidence that appropriate action will be taken. 

The government is taking action to address the exploitation of temporary migrant workers in New Zealand and wants feedback on a number of proposals. 

Visit mbie.govt.nz/exploitationreview and respond by 5 pm on November 27, 2019.

 

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