A Bay of Plenty horticultural labour hire company and its former director have been ordered to pay more than $416,000 after the Employment Relations Authority found four migrant workers were underpaid, denied holiday entitlements and required to make unlawful payments linked to their employment.

In a determination released this month, ERA member Jeremy Lynch ordered Indo Kiwi Horticulture to pay $176,000 in penalties and former director Boota Singh Dhillon to pay a further $88,000.

The company was also ordered to pay more than $152,000 in wage arrears, holiday pay arrears and unlawful premium payments owed to four former workers from India.

The case arose after the Labour Inspectorate received complaints in 2024 from workers employed by Indo Kiwi, which supplied labour predominantly to kiwifruit orchards across the Bay of Plenty.

According to the authority’s determination, all four complainants were Indian nationals employed on employer-specific work visas and had come to New Zealand to work for Indo Kiwi.

The authority found unlawful premiums totalling $65,437 were paid by three workers to obtain or maintain work with the company.

One worker was found to have paid $12,000, another $29,437 and a third $24,000. The determination records that some payments were made to bank accounts belonging to members of Dhillon’s family in India.

The authority accepted evidence from workers that they had been told the payments were required because Indo Kiwi had supported their work visa applications.

“These were not isolated or technical breaches. Rather, they indicate a disregard for minimum employment standards over the course of the complainants’ employment,” Lynch said.

The authority also found Indo Kiwi failed to provide employment records despite repeated requests from labour inspectors. As a result, the authority relied on evidence from the workers and calculations prepared by the labour inspector to determine arrears.

Lynch accepted claims for more than $65,000 in minimum wage arrears, about $21,700 in holiday pay arrears and $65,437 in unlawful premium payments.

The determination found the workers were particularly vulnerable because their visas tied them exclusively to Indo Kiwi.

“The complainants were all Indian nationals who had come to New Zealand in search of employment opportunities,” Lynch said.

“There was an inherent power imbalance in the employer/employee relationship, which was amplified by the fact the complainants were relying on the support of their employer in respect of their immigration status.”

He found the breaches were “clearly intentional, and not inadvertent” and said Dhillon, as director at the time, was actively involved in managing the complainants’ work, including setting work hours and pay arrangements.

The authority ruled Dhillon was the “controlling mind” of the business and personally involved in the employment standards breaches.

It also found the company had gained an unfair commercial advantage by withholding wages and holiday entitlements owed to workers.

“The authority observes that, in depriving the complainants of their minimum entitlements, Indo Kiwi has reduced its costs and gained an unfair advantage over its competitors.”

Under the ruling, labour inspectors can recover unpaid wage arrears, holiday pay and unlawful premium payments directly from Dhillon if Indo Kiwi fails to meet its obligations.

Lynch said significant penalties were required to deter similar conduct.

“The authority considers that an appropriate message needs to be sent to employers, persons involved in breaches of employment standards, and any others who may be tempted to breach in a similar manner, that non-compliance will not be tolerated.”

Half of the penalties imposed on the company and Dhillon will go to the Crown. The remaining $132,000 will be distributed equally among the four complainants, giving each worker $33,000 in penalty payments in addition to any arrears and unlawfully obtained premiums recovered.