Four Square Taupō, former director Gurvinderpal Singh fined over employment breaches
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A Taupō Four Square operator and its former director have been fined more than $80,000 after the Employment Relations Authority uncovered serious breaches, including the exploitation of migrant workers who were underpaid, overworked, and in one case charged $10,000 for a job, according to The New Zealand Herald.
The ERA found that G&G Bolina Ltd, trading as Four Square Tauhara, underpaid and overworked four employees, two of whom were migrant workers recruited from overseas in 2023. One of the workers paid a $10,000 premium to secure employment with the company, in breach of employment laws.
The case was brought by a Labour Inspector against the company and its former director, Gurvinderpal Singh, who was found to have been involved in the breaches. Singh, previously one of two directors until December 2021, was now a 50 percent shareholder in the business.
ERA member Rachel Lamer said Singh had taken advantage of the "inherent inequality of power in the employment relationship" by failing to ensure workers were paid the minimum wage for all hours worked.
"The Labour Inspector submitted that the inherent inequality of power in the employer/employee relationship is amplified in this case as the complainants were migrant workers, recently arrived in New Zealand, whose visa status was dependent on the respondents," Herald quoted as saying.
In total, 23 breaches were identified, spanning violations of the Employment Relations Act, Holidays Act, and Minimum Wage Act, along with a breach of the Wages Protection Act related to the unlawful premium payment. The unpaid entitlements across the four employees amounted to $28,139.24.
The ERA heard that the migrant workers were required to work between five and seven days a week, with daily hours ranging from two to 15. However, company records inaccurately reflected that they worked only five days a week for six hours per day.
One worker was not paid for 358.47 hours worked between September and December 2023, resulting in $8137.19 in unpaid wages. Another was unpaid for 351.46 hours between October and December, losing $7978.22. The company also failed to meet obligations relating to public holiday and alternative holiday payments for all four affected employees.
Lamer described the workers as "vulnerable employees" and said seeking premiums from them was "egregious", particularly given their limited understanding of New Zealand employment law.
"[They] were dependent on Bolina for their visa status to remain current, which made them particularly vulnerable to Bolina's demands. This illustrated the imbalance of power the respondents held in this case."
She also noted that the migrant workers were treated differently from other staff, and that the company’s actions undermined employment standards, giving it an unfair advantage over competitors.
G&G Bolina Ltd was ordered to pay a penalty of $52,800 to the Crown, while Singh was fined $27,840. An earlier ERA decision confirmed that outstanding wage and leave claims had been resolved between the parties.
Foodstuffs North Island, which oversees the Four Square, New World and Pak’nSave brands, said it was “shocked and deeply disappointed” by the findings.
"Exploitation of workers is unacceptable and will not be tolerated within our co-operative," a spokesperson told NZME, as quoted by Herald.
The spokesperson added that the conduct fell short of the co-operative’s expectations.
"It does not reflect our values, our Code of Conduct, or the standards of our owner-operator members.
"This case is a source of real disappointment to our owner-operator community, who overwhelmingly do the right thing and take their responsibilities to their teams seriously. Where behaviour does not meet our standards, we will act," Herald quoted.
The New Zealand Herald report mentioned that Foodstuffs North Island confirmed it had completed its own investigation into the matter and would review its systems and oversight processes.
"We remain committed to continuously strengthening our systems and oversight and will review whether any further improvements can be made as a result of this case," Herald quoted.
A Taupō Four Square operator and its former director have been fined more than $80,000 after the Employment Relations Authority uncovered serious breaches, including the exploitation of migrant workers who were underpaid, overworked, and in one case charged $10,000 for a job, according to The New...
A Taupō Four Square operator and its former director have been fined more than $80,000 after the Employment Relations Authority uncovered serious breaches, including the exploitation of migrant workers who were underpaid, overworked, and in one case charged $10,000 for a job, according to The New Zealand Herald.
The ERA found that G&G Bolina Ltd, trading as Four Square Tauhara, underpaid and overworked four employees, two of whom were migrant workers recruited from overseas in 2023. One of the workers paid a $10,000 premium to secure employment with the company, in breach of employment laws.
The case was brought by a Labour Inspector against the company and its former director, Gurvinderpal Singh, who was found to have been involved in the breaches. Singh, previously one of two directors until December 2021, was now a 50 percent shareholder in the business.
ERA member Rachel Lamer said Singh had taken advantage of the "inherent inequality of power in the employment relationship" by failing to ensure workers were paid the minimum wage for all hours worked.
"The Labour Inspector submitted that the inherent inequality of power in the employer/employee relationship is amplified in this case as the complainants were migrant workers, recently arrived in New Zealand, whose visa status was dependent on the respondents," Herald quoted as saying.
In total, 23 breaches were identified, spanning violations of the Employment Relations Act, Holidays Act, and Minimum Wage Act, along with a breach of the Wages Protection Act related to the unlawful premium payment. The unpaid entitlements across the four employees amounted to $28,139.24.
The ERA heard that the migrant workers were required to work between five and seven days a week, with daily hours ranging from two to 15. However, company records inaccurately reflected that they worked only five days a week for six hours per day.
One worker was not paid for 358.47 hours worked between September and December 2023, resulting in $8137.19 in unpaid wages. Another was unpaid for 351.46 hours between October and December, losing $7978.22. The company also failed to meet obligations relating to public holiday and alternative holiday payments for all four affected employees.
Lamer described the workers as "vulnerable employees" and said seeking premiums from them was "egregious", particularly given their limited understanding of New Zealand employment law.
"[They] were dependent on Bolina for their visa status to remain current, which made them particularly vulnerable to Bolina's demands. This illustrated the imbalance of power the respondents held in this case."
She also noted that the migrant workers were treated differently from other staff, and that the company’s actions undermined employment standards, giving it an unfair advantage over competitors.
G&G Bolina Ltd was ordered to pay a penalty of $52,800 to the Crown, while Singh was fined $27,840. An earlier ERA decision confirmed that outstanding wage and leave claims had been resolved between the parties.
Foodstuffs North Island, which oversees the Four Square, New World and Pak’nSave brands, said it was “shocked and deeply disappointed” by the findings.
"Exploitation of workers is unacceptable and will not be tolerated within our co-operative," a spokesperson told NZME, as quoted by Herald.
The spokesperson added that the conduct fell short of the co-operative’s expectations.
"It does not reflect our values, our Code of Conduct, or the standards of our owner-operator members.
"This case is a source of real disappointment to our owner-operator community, who overwhelmingly do the right thing and take their responsibilities to their teams seriously. Where behaviour does not meet our standards, we will act," Herald quoted.
The New Zealand Herald report mentioned that Foodstuffs North Island confirmed it had completed its own investigation into the matter and would review its systems and oversight processes.
"We remain committed to continuously strengthening our systems and oversight and will review whether any further improvements can be made as a result of this case," Herald quoted.
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