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Otago Daily Times
31-07-2025
- Business
- Otago Daily Times
Company, owner fined $15k for obstructing investigation
A Southland dairy business and its owner — who have paid over $116,000 in arrears owed to three employees and were last year ordered to pay penalties of $215,000 by the Employment Relations Authority (ERA) for minimum employment standards breaches relating to those arrears — have been penalised a further $15,000 for obstructing the ERA's investigation. The company, Rural Practice Ltd (RPL) was ordered to pay a penalty of $10,000 and its owner Reza Abdul-Jabbar ordered to pay a penalty of $5000. Labour Inspectorate head of compliance and enforcement Joanne Hacking said the latest penalties imposed on RPL and its owner demonstrated the importance of co-operating and complying with the authority and its processes. Mr Abdul-Jabbar is a religious leader in his community and served as a religious adviser and mentor for at least one of the three Indonesian workers he was found to have exploited when the ERA penalised him and his business last year. Both the business and Mr Abdul-Jabbar were found to have breached minimum employment standards by not paying the workers the minimum wage, not paying certain holiday and leave pay appropriately, unlawfully deducting money from their wages, forcing the workers to pay premiums, and not keeping accurate wage and time records. During the initial Labour Inspectorate investigation into the exploitation of the workers, RPL and Mr Abdul-Jabbar claimed one of the workers owed $5000 for recruitment costs paid by RPL to an agent in Indonesia on his behalf, and that the worker had agreed for this amount to be deducted from his wages. However, the worker denied he had hired a recruitment agent and said he had not seen the invoice provided by RPL and Mr Abdul-Jabbar until the labour inspector showed it to him. During its investigation, the ERA asked to see evidence that RPL had paid the invoice and RPL, through Mr Abdul-Jabbar, subsequently provided a photograph of a receipt. But when asked for the original of the receipt, Mr Abdul-Jabbar provided a similar, but different, document without any accompanying explanation. This led the ERA to launch an own-motion inquiry into whether it had been obstructed. Chief of the ERA Andrew Dallas, who ruled on the obstruction case, found none of the "reasonably available and objectively verifiable, corroborative material, has ever been provided". He also found "it more likely than not this material does not exist". The actions of RPL and Mr Abdul-Jabbar had made the ERA's investigation process significantly more difficult for both the ERA and the labour inspector. Mr Dallas found an obstruction had occurred due to "the ongoing failure to provide evidence to corroborate the authenticity of two receipts — both materially different but said to be 'original"'. "The nature of RPL and Mr Abdul-Jabbar's conduct in obstructing the ERA's investigation was serious and sustained. The obstruction was not mere inadvertence or negligence," the ERA said. In a previous determination relating to this case, the employer had tried to mislead or deceive Immigration New Zealand and the Labour Inspectorate by providing them materially different versions of the same documents (IEAs and pay slips) and it was deeply concerning to see this type of behaviour impact the authority's process as well, Ms Hacking said. "This case underscores the critical importance of honesty and transparency in proceedings before the ERA, which relies on the integrity of the evidence presented to it." — Allied Media
NZ Herald
31-07-2025
- Business
- NZ Herald
Migrant exploiter probe obstruction: Dairy farmer Reza Abdul-Jabbar and business face $15k fine
He was previously an imam at a mosque in Invercargill. Abdul-Jabbar, a community and religious leader who acted as a spiritual advisor and mentor for at least one of the Indonesian workers he exploited, was found to have breached minimum employment standards. Photo / Brett Phibbs He and his business did not pay the workers a minimum wage, did not pay for certain holidays and leave appropriately, unlawfully deducted money from wages, forced the workers to pay premiums and did not keep accurate wage and time records, the Employment Relations Authority (ERA) said. The obstruction arose when the Labour Inspectorate heard Abdul-Jabbar and RPL claim one of his workers owed $5000 for recruitment costs. It was claimed RPL had paid an agent in Indonesia on the worker's behalf and that the worker had agreed for the amount to be deducted from his wages. The worker denied hiring a recruitment agent and said he had not seen the invoice provided by RPL and Abdul-Jabbar until the Labour Inspectorate showed it to him. Abdul-Jabbar and his business did not pay workers a minimum wage, did not pay for certain holidays and leave appropriately, unlawfully deducted money from wages, forced workers to pay premiums and did not keep accurate wage and time records, the ERA says. Photo / Brett Phibbs The ERA asked for evidence that RPL had paid the invoice. Abdul-Jabbar then showed a photograph of a receipt. The ERA asked for the original receipt, and Abdul-Jabbar then provided a similar, but different document without any other explanation. The ERA then launched an own-motion inquiry into whether it had been obstructed. Andrew Dallas, chief of the ERA, said the document 'more likely than not ... does not exist'. Dallas said none of the 'reasonably available, and objectively verifiable, corroborative material, has ever been provided'. He ruled on the obstruction case, and found it had occurred due to 'the ongoing failure to provide evidence to corroborate the authenticity of two receipts - both materially but said to be 'original'.' The ERA called Abdul-Jabbar and RPL's obstruction 'serious and sustained - not mere inadvertence or negligence'. Labour Inspectorate head of compliance and enforcement Joanne Hacking said the ERA had already found in a previous determination that Abdul-Jabbar and RPL had tried to mislead or deceive Immigration New Zealand and the inspectorate. 'This case underscores the critical importance of honesty and transparency in proceedings before the ERA, which relies on the integrity of the evidence presented to it,' Hacking said. 'The Labour Inspectorate is pleased the ERA took the matter seriously, conducted a thorough inquiry and took decisive action to uphold the integrity of its processes. This sends a strong and clear message that deliberate attempts to frustrate ERA investigations are not tolerated.' Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022. Sign up to The Daily H, a free newsletter curated by our editors and delivered straight to your inbox every weekday.
1News
17-07-2025
- Business
- 1News
Sushi restaurant ordered to pay $30k over employment standard breaches
A Lower Hutt sushi restaurant has been ordered by the Employment Relations Authority to pay $30,000 in penalties after multiple breaches of employment standards in relation to an "inherently vulnerable" migrant worker. The restaurant, Well Sushi, was previously ordered to pay the former employee, who was in New Zealand on a work visa, $53,940.03 in wage arrears, the Ministry of Business, Innovation and Employment (MBIE) said. The arrears have since been paid to the worker, who is now a permanent resident of New Zealand. The breaches, which Well Sushi acknowledged, included: failing to keep accurate wage and time records; not paying the minimum wage; not providing the full annual holiday entitlement; failing to pay time and a half for work on public holidays; and not paying for sick leave taken. The labour inspector involved in the case said Well Sushi's conduct "has undermined the obligations of mutual trust and confidence that should exist in any employment relationship". The inspector noted the affected employee was a migrant worker on a work visa sponsored by the restaurant, making him 'inherently vulnerable' particularly due to having little experience of New Zealand employment standards and little ready access to support and information about those standards or its enforcement. ADVERTISEMENT The morning's headlines in 90 seconds, including an Auckland teen seriously ill in Vietnam, Trump slams supporters, and Icelandic volcano prompts evacuations. (Source: 1News) The restaurant argued that the penalties should not be imposed, saying the breaches were partly 'inadvertent'. Employment Relations Authority member Davinia Tan said while the restaurant and worker had resolved the dispute, 'engaging in a settlement process does not achieve the objective of deterrence'. 'Well Sushi's conduct fell below the minimum standards of good faith, mutual trust and confidence.' The Labour Inspectorate investigations manager for the central/southern region, Taahera Begum, said employers breaching employment standards could have serious consequences. 'The fact that the wage arrears in this case amounted to more than $50,000 is a sign of how much this employee was disadvantaged by his employer, someone he no doubt trusted. 'The Labour Inspectorate views exploitation as among the most serious breaches of employment standards. Exploitation of vulnerable workers as occurred in this case, undermines the labour market by undercutting fair competition and causes great hardship to those affected.'
