Reparations awarded to Migrant workers in $335k conviction

Ratha Ny, the owner and director of R.S.X Limited (trading as the Bakehouse Café in Murupara), pleaded guilty and was convicted in March 2025 for 4 charges under the Immigration Act 2009 for providing false or misleading information to Immigration New Zealand.

His company, R.S.X Limited, also pleaded guilty and was convicted of 6 exploitation charges for serious breaches of employment law, including knowingly underpaying employees below the minimum wage and failing to correctly pay holiday and related entitlements.

On 14 August 2025, R.S.X Limited and its director appeared for sentencing in the Rotorua District Court. The court fined R.S.X Limited $150,000 for the 6 exploitation charges and ordered the company to pay $25,000 in emotional harm reparations — $10,000 each to 2 victims and $5,000 to a third. These reparations were paid by Mr Ny in anticipation of sentencing and were not court-imposed. This brought the total court-imposed penalty to $175,000.

These penalties are in addition to $160,000 in minimum wage arrears that R.S.X Limited had already repaid to the affected workers prior to sentencing, through an agreement between Mr Ny’s counsel and MBIE Legal. Altogether, the financial consequences for R.S.X Limited, including fines, reparations, and minimum wage arrears, amounted to $335,000.

The court sentenced Mr Ny to 10 months on home detention for four counts of providing false and misleading information (including one representative charge). The court adopted an initial starting point of 30 months’ imprisonment, which was reduced to 21 months after applying discounts.

Employers are legally required to pay migrant workers at least the minimum wage, ensure they are paid for all hours worked, and provide holiday pay in accordance with the Holidays Act 2003. R.S.X Limited failed to meet any of these obligations.

Steve Watson, General Manager of Immigration Compliance and Investigation at MBIE, said the exploitation of temporary migrant workers — such as underpayment or excessive working hours — is unacceptable and a clear breach of New Zealand law.

 “Exploitation is an issue that affects all of us. As well as affecting migrants directly, it’s detrimental for legitimate businesses which are undercut by these practices, and to New Zealand’s reputation as a fair place to work, live and do business. I acknowledge the migrant workers for bringing their case forward and shedding light on the unlawful way in which their employer was treating them.”

Steve Watson also highlighted the significance of the emotional harm payments:

 “It’s rare for emotional harm payments to be awarded in these cases, so this outcome is a real win for the victims. It sends a strong message that the emotional toll of exploitation is being recognised and taken seriously.”

Exploitation of temporary migrants or those working unlawfully is a criminal offence under Section 351 of the Immigration Act. Conviction can result in imprisonment for up to seven years and/or a fine of up to $100,000.

Watson added that this case is a positive example of the growing number of joint compliance investigations being carried out by Immigration Compliance and Investigations (ICI) and the Labour Inspectorate.
MBIE encourages anyone who suspects workplace exploitation to report it immediately.

• To report migrant exploitation, call 0800 200 088.
• For cases of people trafficking, contact local police or call 111 in an emergency.
• To report anonymously, call Crimestoppers on 0800 555 111 or use the online Crimestoppers form.

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