Auckland restaurant ordered to pay $377,000 in ‘modern slavery’ case

staff cleaning restaurant kitchen
“These breaches were persistent, deliberate and designed to extract labour at an unlawful discount.” (Source: Bigstock)

The Indian Taste restaurant in Auckland has been ordered to pay a combined $377,000 in penalties and compensation for exploiting seven migrant workers.

The Employment Relations Authority (ERA) has fined the company’s sole director, Krishna Khandelwal, $177,300 and required the restaurant to pay nearly $200,000 in wage arrears to the employees.

The decision followed a nine-month-long Labour Inspectorate investigation into allegations of serious employment breaches. The Inspectorate previously received multiple complaints between March and December 2024 alleging serious breaches. 

The restaurant and its director were found to have breached multiple employment standards, including failing to pay the minimum wage, making unlawful deductions from wages, failing to pay annual holiday and alternative holiday entitlements, requiring workers to pay premiums to secure employment, and failing to keep accurate wage and leave records.

The staff were regularly made to work between 60 and 90 hours per week but were only paid for around 30 hours. Some were also required to work for one to two weeks unpaid when they first started.

“This was an egregious case of migrant exploitation where vulnerable workers – many with limited English and little understanding of New Zealand employment law – were ruthlessly exploited for the personal gain of the company and its owner,” said Labour Inspectorate’s migrant exploitation manager Sam Mills. 

 “These breaches were persistent, deliberate and designed to extract labour at an unlawful discount.

“The penalty is significant and should serve as a clear deterrent to employers who seek to take advantage of vulnerable people trying to build a life in New Zealand. It is a clear message to employers and individual directors that this kind of business behaviour is unacceptable.”

ERA member Matthew Piper added, “The financial harm was severe. They had to borrow money at high interest, take personal loans and many were unable to support families overseas.” 

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