Indian restaurant ordered to pay nearly $400,000 after ‘ruthless’ exploitation of migrant workers

An Auckland Indian restaurant and its former owner have been ordered to pay about $400,000 after authorities discovered systematic exploitation of migrant workers, including forcing staff to work up to 90 hours a week while paying them for only a fraction of that time. The Employment Relations Authority (ERA) ruled that The Indian Taste Ltd and its former director, Krishna Khandelwal, committed multiple serious breaches of New Zealand employment law, reports the NZ Herald. Under the decision, the restaurant must repay almost $200,000 in unpaid wages to seven affected workers. Khandelwal has also been fined $177,300 for his role in the violations, while a further $35,000 compensation payment will be shared equally among the employees. The case comes after an investigation was launched as several complaints were received between March and December 2024. The nine-month inquiry found workers were regularly required to work between 60 and 90 hours each week but were paid for only about 30 hours. Some employees were also made to work for one to two weeks without pay when they first joined the business.

Labour Inspectorate migrant exploitation manager Sam Mills said the affected workers were vulnerable and got used because many had limited English skills and little understanding of New Zealand employment laws. “The workers were ruthlessly exploited for the personal gain of the company and its owner,” Mills said. “These breaches were persistent, deliberate and designed to extract labour at an unlawful discount”. A wide range of employment law violations were found, including failure to pay the minimum wage, unlawful wage deductions, failure to provide annual holiday and alternative holiday entitlements, charging workers premiums to secure jobs, and failing to maintain accurate wage and leave records.

ERA member Matthew Piper said Khandelwal was in charge of the company and personally profited from paying workers less than they were entitled to. “As the shareholder of The Indian Taste, Mr Khandelwal received a financial benefit for his actions by underpaying workers and in doing so also failed to compete fairly with other businesses providing similar products and who complied with the law,” Piper said. The ERA found the impact on workers went far beyond unpaid wages. Some were forced to take out personal loans and borrow money at high interest rates, while struggling to support family members overseas. Mills said the penalty should serve as a warning to employers who seek to exploit vulnerable workers.