Lower Hutt Sushi Restaurant Fined $30,000 for Migrant Worker Exploitation

Authority Cites “Inherently Vulnerable” Employee and Multiple Breaches

A Lower Hutt sushi establishment, Well Sushi, has been ordered to pay $30,000 in penalties for significant employment standards violations. These breaches directly impacted a migrant worker, who has since become a permanent resident of New Zealand. The penalties underscore the serious consequences employers face for exploiting vulnerable workers.

Systematic Violations Revealed

The Employment Relations Authority mandated the penalty after Well Sushi admitted to a series of failings. These included not maintaining accurate wage and time records, underpaying the minimum wage, and failing to provide full annual holiday entitlements. Additionally, the restaurant did not pay staff time-and-a-half for public holiday work or compensate for sick leave taken.

The Ministry of Business, Innovation and Employment (MBIE) had previously ordered Well Sushi to repay the affected former employee $53,940.03 in wage arrears, a sum that has now been settled.

Vulnerable Worker Exploited

A labour inspector highlighted the precarious position of the worker, who was on a visa sponsored by the restaurant. This made him “inherently vulnerable,” lacking familiarity with New Zealand employment laws and access to support. The inspector stated that Well Sushi’s actions “undermined the obligations of mutual trust and confidence that should exist in any employment relationship.”

This case echoes broader concerns about worker exploitation. For example, a 2023 report by the Office of the Auditor-General in New Zealand found that migrant workers are disproportionately affected by employment breaches, often due to language barriers and fear of reprisal (Office of the Auditor-General, 2023).

Restaurant’s Defence Rejected

Well Sushi had argued that the breaches were “partly ‘inadvertent'” and sought to avoid the penalties. However, Employment Relations Authority member **Davinia Tan** rejected this, stating that “engaging in a settlement process does not achieve the objective of deterrence.” She added that the restaurant’s conduct “fell below the minimum standards of good faith, mutual trust and confidence.”

Taahera Begum, Labour Inspectorate investigations manager, emphasized the severity of such conduct. “The fact that the wage arrears in this case amounted to more than $50,000 is a sign of how much this employee was disadvantaged by his employer, someone he no doubt trusted.”

“The Labour Inspectorate views exploitation as among the most serious breaches of employment standards. Exploitation of vulnerable workers as occurred in this case, undermines the labour market by undercutting fair competition and causes great hardship to those affected.”

—Taahera Begum, Labour Inspectorate Investigations Manager

The inspectorate views exploitation as a grave offence, significantly disadvantaging employees and distorting fair competition within the labour market.