The Employment Relations Authority has ordered a Nelson restaurant and its parent company to fork out more than $30,000 in back wages and interest for three employees.
The Authority (ERA) made its decision after Mirac Limited, trading as Zaras Turkish Kebabs and Cafe, was found to have breached several minimum employment standards between 2014 and 2018.
Omer Akbaba, who owned and operated the business, was central to the case.
"Akbaba is one of two company directors and shareholders of the business," the Ministry of Business, Innovation and Employment (MBIE) said in a statement this morning.
"The ERA found Mr Akbaba, acting as owner/operator, had the three employees work the 'middle-shift', in-between the busy lunch and dinner services, but did not pay them for these hours worked.
"Mr Akbaba completed his employee's timesheets on their behalf, indicating they had worked the lunch and dinner shift but neglected to include the middle-shift where the employees spent time preparing meats, salads and sauces so as to be ready for the dinner service."
Now, Mirac Limited must pay the three employees $30,886.44 in wage arrears, holiday pay and interest.
"Through the course of their time working for the business, they were not paid for a number of hours each day, and therefore did not receive the wages they were owed or their associated holiday pay," MBIE said.
On top of repaying the employees, the company must pay $18,000 in penalties "for breaching the Holidays Act, for failing to pay the minimum wage and for failing to maintain proper wages and time records".
Akbaba must personally pay a $9000 penalty, bringing the total penalty to $27,000 and the total payments owed to more than $57,000.
ERA member Michael Loftus noted the three employees were migrants.
"They are inherently vulnerable, particularly because they were unfamiliar with New Zealand laws and regulations."
Simon Humphries, head of the Labour Inspectorate, said the outcome should serve as a warning.
"Thanks to the commendable actions of the three employees, the Labour Inspectorate was able to investigate and hold to account employers who set out to deceive and benefit from the exploitation of their workers," Humphries said, adding that he hoped the case closed with "some justice" for the employees.
"Omer Akbaba was ripping them off and gained from their free labour.
"This company and its owners showed a blatant disregard for their obligations as employers and, as a result, must now pay the consequences."
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