A Bay of Plenty kiwifruit contracting business has been ordered to pay more than $226,000 for breaching the employment law after an investigation by the Ministry of Business, Innovation and Employment.

MBIE's Labour Inspectorate investigated Freemind Enterprize Ltd following a complaint by a former worker.

A Bay of Plenty kiwifruit employer has been ordered to pay $226,000 after breaching employment law.

The investigation revealed the employer did not have written employment agreements, wage and time or holiday records for 121 employees that were hired to harvest kiwifruit in the Bay of Plenty between 2009 and 2013. These documents are a requirement under the law and need to be kept by employers for six years.

The employer also failed to provide these workers with holiday pay and time and a half pay for work performed on a public holiday. One employee was also denied minimum wages.

The ERA has ordered Freemind Enterprize Ltd to pay $161,343.67 plus interest in arrears to workers and $65,000 in penalties for the above failures.

Director of the company Gurmail Lally has been made jointly and severally liable for the amounts owing.

Labour Inspectorate Regional Manager Natalie Gardiner says the Inspectorate is committed to ensuring those who are avoiding their obligations as an employer, including directors of companies, are held personally liable.

The inspectorate is in the process of contacting the former employees of Freemind Enterprize Ltd listed on the determination.

'It is likely that a number of these employees were temporary migrants who may have already left New Zealand.

'The Inspectorate recognises that migrants are a particularly vulnerable section of the workforce and may often be reluctant to take action against their employer. This case makes it clear that failure by employers to provide such workers with all entitlements will not be tolerated.”

NZ Kiwifruit Growers Inc (NZKGI) Chief Executive Nikki Johnson says growers strongly support the Government prosecuting people who break the law, following the announcement today by the Employment Relations Authority (ERA) of serious breaches of employment law by a Bay of Plenty kiwifruit contracting business.

'The overwhelming majority of our industry complies with labour regulations and we have an ongoing work programme with government agencies to educate growers and contractors about their legal responsibilities to their workers.

'Kiwifruit is a major contributor to regional economies and we take our responsibilities to our community very seriously – we strongly condemn these illegal and unprincipled actions>"

ERA ruled that the contractor Freemind Enterprize pay $161,343.67 in wages arrears. The company was also fined $65,000 in penalties for not having written employment agreements, records for wage, time or holiday pay, and for failing to pay minimum wage to one employee.

NZKGI has an ongoing programme to educate growers and contractors about their responsibilities under the law and has been working with other agencies to establish an 'ID card” for workers in viticulture and horticulture along with the broader horticulture industry and labour experts.

'This means growers can see at a glance that everyone on their orchard can work in New Zealand and is legitimately employed. The scheme was launched in late March and has been very well received by industry, with around 500 cards issued in BOP, 200 in Marlborough, 200 in Hawke's Bay and 30 in Tasman at the end of May”.

'We are also working with NZ Master Contractors Inc on a pilot scheme for contractors to ensure best practice across the kiwifruit contracting community, providing systems, training and support."

Nikki encourages anyone who knows of illegal labour practices in the kiwifruit industry to contact NZKGI and MBIE.