Lower Hutt restaurant fined $90K for exploiting Indian migrant workers

A Lower Hutt restaurant has been fined NZD $90,000 after being found guilty of exploiting temporary Indian migrant workers over several years, following complaints from two employees, who spoke up about serious mistreatment at their workplace. 

The Wellington District Court found the company guilty of two representative charges under the Immigration Act 2009, relating to the mistreatment of two Indian nationals employed at the restaurant between 2017 and 2021.

Prior to sentencing, the Court ordered reparation payments of NZD $46,574.74 to the workers through the Court, and NZD $25,926.47 to the Inland Revenue Department. An additional NZD $9,361.66 in reparation was ordered at sentencing.

Jason Perry, National Manager Investigations at the Ministry of Business, Innovation and Employment (MBIE), said the investigation by MBIE and Immigration New Zealand 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 two workers, unpaid minimum wage entitlements totalled NZD $36,217.78, with an additional 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,” Mr Perry said.

Between 2020 and September 26, 2021, the restaurant also deducted NZD $50 per week from one worker’s pay for food, while simultaneously increasing the worker’s hourly rate to NZD $25.50 to meet essential skills residence visa pay requirements.

“Employers are solely responsible for meeting visa‑related pay requirements and must never pass those costs on to workers,” Perry said.

“Using visa requirements or a worker’s immigration status to influence their employment is unlawful and will not be tolerated.”

He emphasised that all workers in New Zealand, regardless of immigration status, are entitled to be paid for every hour worked and to receive their full leave entitlements. INZ and MBIE continue to encourage workers to come forward safely and confidentially.

“This case highlights why migrant exploitation remains a priority,” Perry added.

“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. Ensuring New Zealand remains a fair place to work depends on holding employers who breach minimum standards to account,” he said.