Freezing order shakes penalty payment out of restaurant chain

Thursday, 21 April 2016

Taste of Egypt workers were not given annual leave.

A freezing order has prompted Taste of Egypt restaurant chain to pay arrears owed to two workers.

The Taste of Egypt has paid $91,000 in penalties and arrears owed to two workers to the Employment Court, pending their appeal, after the Ministry of Business, Innovation and Employment's (MBIE) Labour Inspectorate issued a freezing order against the company and its directors.

An investigation by the Labour Inspectorate last year found the Taste of Egypt's restaurant in Richmond, near Nelson failed to pay minimum wages or statutory holidays, and did not provide annual leave to two migrant employees from India.

The company, which operated outlets in Richmond and in Papanui, Christchurch, was found to have underpaid the workers, Rohit Sharma and Gurpreet Singh, by about $65,000.

They were not paid for all hours worked and were not paid annual leave and public holidays.

The company's directors are Diane MacFarlane and Saeed Awad, of Richmond, who are also its shareholders.

The two chefs worked more than 70 hours and were only paid for 30. The company did not keep adequate time and wage records.

The Employment Relations Authority (ERA) ordered Taste of Egypt to pay the $91,000 last November but the company appealed.

When it became aware the company had sold its remaining Christchurch business, the Labour Inspectorate believed the directors were preparing to leave the country permanently or dissipate their assets.

An application was made to the Employment Court and a freezing order was granted on April 5.

The bank accounts of the company and the directors were frozen along with their assets, to the value of the outstanding debt. That order has now been lifted.

Labour Inspectorate Wellington regional manager Kevin Finnegan said exploitation of workers, such as paying less than the minimum wage, would not be tolerated.

'The inspectorate will use all legal avenues available to ensure those determined to escape their financial and legal responsibilities are held to account. MBIE is pleased that this action has seen the funds currently owed paid to the court.

'MBIE takes employment law breaches very seriously and is working proactively to crack down on it throughout the country.'

Employers who breach employment law will be subject to enforcement action. From April 1, most serious breaches can carry penalties of up to $50,000 for an individual and the greater of $100,000 or three times the financial gain for a company.

MBIE said anyone who was being exploited, or who knew someone who was, should get in touch.

The workers' employment ended in September when the Richmond branch was sold.