Businessman who exploited migrant workers must pay $120k after liquidation

Tuesday, 21 August 2018

Binde Enterprises failed to pay 75 migrant workers on a vegetable farm.

A businessman who liquidated his company after being fined almost $430,000 for exploitation has become personally liable for the $120,000 outstanding.

The Employment Relations Authority joined Jujhar Singh to his previous company, Binde Enterprises, after a Labour Inspectorate investigation found the company owed 75 workers on a vegetable farm in the Bombay Hills nearly $210,000 in wages.

Singh has three months to pay the full outstanding amount.

Labour Inspectorate head of horticulture Kevin Finnegan said the move to make Singh personally liable sent a message to other owners and directors closing down businesses to get out of paying their fines.

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'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 were a priority for the Labour Inspectorate, as the workers were a vulnerable group in 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,' Finnegan said.

'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.'

In 2016, the wife of an Auckland fast food business was determined to be financially liable for more than $20,000 in unpaid wages to eight migrant workers by the authority.

That same month three owners of an Auckland clothing store chain were found personally liable for nearly $70,000 in arrears owed by their companies to exploited migrant workers.

The Labour Inspectorate is also calling for all former workers of Binde Enterprises to come forward, as they may have money owed to them which can be claimed back through these determinations.

Workers should call 0800 20 90 20 with their IRD number and contact details.