Timaru Restaurant Owner Ordered to Pay Over $100K for Employment Violations

A restaurant owner in Timaru has been ordered to pay over $100,000 to a former employee after the Employment Relations Authority (ERA) found her guilty of unlawfully charging him for a job and violating multiple employment standards. The decision, announced on October 3, 2023, favored Akashdeep Singh, who claimed that Bhupinder Kaur, manager of Jaslyn Co Ltd, demanded $60,000 from him in India to secure a restaurant manager position in New Zealand.

Singh testified that Kaur instructed him to transfer money to her associates, asserting it was necessary for visa expenses. Upon his arrival in New Zealand, Singh found himself working as a kitchen hand rather than in the managerial role he had expected, according to reports from The Press.

In her defense, Kaur denied the allegations, stating that only $6,000 was meant for visa-related costs, while the remaining amount pertained to debts and currency exchanges. However, ERA member Peter van Keulen found Singh’s testimony credible and consistent, while Kaur’s explanations lacked supporting evidence and clarity.

Employment Issues and Unjust Dismissal Claims

Singh began his employment at Kebab King in Ōamaru in July 2023. Following the sale of the business four months later, he was transferred to Ariana Enterprises Ltd, another company owned by Kaur, which operates two Turkish kebab outlets in Timaru. Singh reported receiving inconsistent working hours, at times falling below the guaranteed 30 hours per week, and claimed he was improperly compensated for public holidays. He also alleged that he was unjustifiably dismissed.

Kaur contended that Singh was compensated correctly, arguing that the business could not sustain his contracted wage of $29.66 per hour and that he had agreed to receive minimum wage instead. The ERA rejected her assertion, validating Singh’s records of hours and entitlements as accurate.

Following the sale of one of its restaurants, Ariana Enterprises terminated Singh’s employment. The ERA determined that the company had failed to consult him adequately prior to his dismissal. “Ariana Enterprises acted unjustifiably,” van Keulen stated, highlighting the disadvantages Singh faced due to the company’s actions.

Financial Penalties and Future Implications

The ERA concluded that Kaur was directly involved in the violations at both Jaslyn Co and Ariana Enterprises, holding her accountable for crucial decisions regarding Singh’s work and remuneration. Kaur has been ordered to personally repay the $60,000 unlawfully charged to Singh. In addition, Ariana Enterprises is required to pay Singh:

– $16,000 in compensation for unjustified dismissal
– $1,614.86 (net) in wage arrears
– $29,688.08 (gross) in further underpayments

Furthermore, Jaslyn Co Ltd is mandated to pay an additional $2,596.99 (net) and $7,857.95 (gross) for unpaid wages and holiday pay. Van Keulen noted that if either company fails to satisfy these payments, Singh may request that Kaur be held personally liable due to her involvement. Kaur is the sole director and shareholder of Ariana Enterprises.

Singh has withdrawn a separate application involving another individual. The ERA has encouraged both parties to seek a private resolution regarding the costs involved in the case.