Exploitation is not a business model: Lower Hutt restaurant fined NZD $90,000

It began when 2 workers spoke up about serious mistreatment in their workplace. Those complaints have resulted in the sentencing of a Lower Hutt restaurant in the Wellington District Court, after being found guilty of exploiting migrant workers over several years.

The company pleaded guilty to 2 representative charges under the Immigration Act 2009, relating to the exploitation of 2 temporary migrant workers employed at the restaurant between 2017 and 2021.

The Court sentenced the company to pay a fine of NZD $90,000. Prior to sentencing, a reparation order was made for NZD $46,574.74 to be paid to the victims via the Court and NZD $25,926.47 to be paid to Inland Revenue Department. The Court ordered further reparation of NZD $9,361.66 at sentencing.

Jason Perry, National Manager Investigations, says the Ministry of Business, Innovation and Employment (MBIE) and Immigration New Zealand’s (INZ) investigation uncovered “a consistent pattern of excessive hours, underpayment, and deductions from wages. Both workers, Indian nationals holding temporary visas, regularly worked up to 9 hours per day, 6 days a week, while being paid for far fewer hours. One was paid for as little as 36.5 hours despite often working close to 54.”

Across the 2 victims, unpaid minimum wage entitlements totalled NZD $36,217.78, with a further NZD $36,284.43 owed in unpaid holiday pay, alternative holidays, sick leave, and other statutory entitlements.

“More than NZD $72,000 in arrears was owed in this case, demonstrating the extent and seriousness of the exploitation,” says Mr Perry.

From 2020 to 26 September 2021, the restaurant deducted NZD $50 a week from 1 worker’s pay, stating it was for food, at the same time as increasing the worker’s hourly rate to NZD $25.50 to meet pay requirements for an essential skills residence visa application.

“Employers are solely responsible for meeting visa‑related pay requirements and must never pass those costs on to workers,” Mr Perry says. “Using visa requirements or a worker’s immigration status to influence their employment is unlawful and will not be tolerated.”

Every worker in New Zealand, regardless of their immigration status, is entitled to be paid for every hour worked and to receive their full leave entitlements. INZ and MBIE will continue to support workers to come forward safely and confidentially. 

He says the case highlights why migrant exploitation remains a priority. “When workers are underpaid or pressured, the consequences go beyond the immediate harm to individuals. Exploitation undercuts compliant employers, distorts fair competition, and weakens confidence in the wider immigration system.”

“Exploitation is not a business model; it is unlawful, harmful, and taken seriously,” says Mr Perry. “Ensuring New Zealand remains a fair place to work depends on holding employers who breach minimum standards to account.”