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Bay of Plenty labor firm fined $100,000 for underpaying migrant workers

A labor supply entity in Bay of Plenty and its director were fined $100,000 by the Employment Relations Authority (ERA) for failing to meet minimum employment standards, including underpayment of wages and holiday pay entitlements to three migrant workers. Asad Horticulture Limited was penalized $70,000, while Mohammad Asaduzzaman, the sole director, was fined $30,000. The penalties are to be paid in quarterly installments of $5,000.

The Ministry of Business, Innovation and Employment (MBIE) highlighted the case, noting the company's acceptance of responsibility but pointing out the delayed compensation to workers. Kevin Finnegan, MBIE's lead inspector, emphasized the importance of enforcing action in such cases to protect vulnerable workers. The company and Asaduzzaman have since settled the owed amounts, totaling $45,170.13, following an agreement with the Labour Inspectorate.

The Labour Inspectorate underscored the vulnerability of the workers, given their temporary visa status, and described the record-keeping failures as "systemic". ERA member Andrew Dallas acknowledged the company's willingness to mediate and settle wage arrears as mitigating factors, yet criticized the delay in payment as a "late performance of duty". Additionally, a request for non-disclosure about the company and its director's identities was denied by the ERA, reinforcing the principle of open justice and the public interest in upholding employment standards.

Source: 1News

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