King Country bakery owners to pay $90,000 over 'cheated and exploited' migrants who worked 77 hour weeks

December 8, 2020
Bright shot of burgers, donuts and sandwiches in a bakery or shop glass counter. Shiny showcase of baked fastfood with prices

The owners of a bakery in the King Country have been ordered to pay $90,000 for exploiting two migrant worker staff who sometimes worked close to 80 hours a week.

The couple who own The Bakehouse Cafe in Taumarunui have been ordered by the Employment Court to pay $70,000 in penalities and $20,000 in compensation to the pair.

This is in addition to the $36,191 arrears the employers already agreed to pay back to the two employees, for minimum wage and holiday pay breaches.

The court ordered owners Sok Hoiring Chhoir and Rattanak Hengfor to pay for breaches of minimum employment standards which included paying their employees less than the minimum wage.

Following an investigation by the Labour Inspectorate, the couple were found to not have keep accurate wage, time and holiday and leave records for the employees. They also did not pay their employees the minimum wage or their full annual and public holiday entitlements.

“In some weeks, they worked for a total of 77 hours each, double what was on their employment agreements, and for less than the minimum wage,” says Labour Inspectorate National Manager Stu Lumsden.

“The employees spoke about how they felt cheated and exploited, that they were fearful of losing their jobs, and that the experience was traumatic.

“These two workers were new to the district, spoke English as a second language and were without extensive support networks. The employer was opportunistic in breaching their rights, recognising the employees were unfamiliar with New Zealand employment laws and their rights and entitlements.”

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