NZ Fines Business Owner $33K for Worker Exploitation

When Diwakar Pandey spoke up about unpaid wages at his Mt Maunganui bottle store job, New Zealand's justice system listened and delivered real consequences for his employer.

Pandey, an Indian migrant worker, spent three years as store manager for Inderpreet Singh's Thirsty Liquor store. During that time, Singh failed to pay him properly on multiple occasions, forced him to work at another store without compensation, and denied him holiday pay and public holiday wages.

The total amount stolen from Pandey's paychecks reached $35,549. But Pandey held a series of temporary work visas that tied him specifically to Singh's company, creating a vulnerable situation where he faced threats of visa cancellation if he complained.

Despite the pressure, Pandey filed a complaint with the Ministry of Business, Innovation and Employment. The Labour Inspector investigated and found clear evidence of intentional wage theft spanning years.

Singh and his company, Hot Spot Liquor Ltd, accepted responsibility once confronted with the evidence. They paid back the full $35,549 in wage arrears to Pandey in January 2024.

But the Labour Inspectorate didn't stop there. They pushed for penalties to send a message that exploiting workers has real consequences in New Zealand.

Employment Relations Authority member Jeremy Lynch heard the case and didn't mince words. He called the treatment "egregious" and noted the offending was "clearly intentional and not inadvertent."

Lynch highlighted how Singh had gained an unfair business advantage by keeping money that should have been paid as wages. This gave him lower costs than competitors who followed the law.

The Bright Side

The justice system recognized Pandey's vulnerability and acted to protect him. Lynch ordered Singh to pay an $11,000 fine, while his company faced a $22,000 penalty.

Importantly, $8,250 of that fine goes directly to Pandey, providing additional compensation beyond his recovered wages. The rest serves as a deterrent to other employers considering similar exploitation.

Katriona Ikenasio, Labour Inspectorate investigations manager, emphasized this was "serious exploitation involving gross conduct." She noted Singh had intentionally failed to maintain proper records to conceal Pandey's true work hours and patterns.

The Labour Inspectorate has been working closely with liquor retailers since 2022 to identify and remove non-compliant operators from the market. This case demonstrates that enforcement is happening and workers have genuine recourse.

For migrant workers facing similar situations, this case offers hope: speaking up can lead to justice, even when visa status creates pressure to stay silent.

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