By Geet G
AUCKLAND, 24 June 2026
An Auckland restaurant and its former owner have been ordered to pay a combined $376,829 after the Employment Relations Authority (ERA) found multiple serious breaches of New Zealand’s employment laws involving migrant workers.
The decision follows a nine-month investigation by the Labour Inspectorate and serves as one of the latest reminders that authorities are continuing to crack down on employers who exploit vulnerable migrant workers.
The case involved The Indian Taste Limited and its former sole director Krishna Khandelwal, who were found to have deliberately underpaid workers, failed to meet minimum employment standards and unlawfully benefited from their labour.
Nearly $200,000 in unpaid wages ordered
The Employment Relations Authority ordered The Indian Taste Limited to pay $199,529 in wage arrears to seven affected employees.
In addition, former director Krishna Khandelwal was personally ordered to pay $177,300 in penalties for his role in the breaches.
Of that amount, $35,000 will be shared equally among the seven workers, recognising the personal harm they suffered.
Together, the financial consequences total almost $377,000.
Workers reportedly worked up to 90 hours a week
According to the Labour Inspectorate, the workers were regularly required to work between 60 and 90 hours each week.
Despite those long hours, they were reportedly paid for only about 30 hours of work.
The investigation also found that some employees were required to complete one to two weeks of unpaid work before officially beginning their employment.
The Employment Relations Authority concluded that the workers were denied several legal employment entitlements, including:
- Payment of the minimum wage.
- Annual holiday pay.
- Alternative holiday entitlements.
- Accurate wage and leave records.
Investigators also found that unlawful deductions had been made from wages and that workers were required to pay money to secure employment, a practice prohibited under New Zealand employment law.
Labour Inspectorate describes exploitation as deliberate
Labour Inspectorate Migrant Exploitation Manager Sam Mills described the case as one of serious migrant exploitation.
He said the workers were particularly vulnerable because many had limited English language skills and little understanding of New Zealand’s employment system.
According to the Inspectorate, complaints were received between March and December 2024, leading to an extensive investigation.
Officials concluded that the employment breaches were not accidental or administrative errors but formed part of a deliberate pattern of behaviour designed to reduce labour costs at the expense of employees.
Mr Mills said the outcome should act as a strong warning to employers who attempt to profit by ignoring employment laws.
Financial hardship extended beyond unpaid wages
Employment Relations Authority Member Matthew Piper said the effects of the exploitation extended far beyond the wages workers had lost.
The Authority found many employees experienced severe financial hardship while working at the restaurant.
Some reportedly borrowed money through high-interest loans simply to cover basic living costs.
Others struggled to financially support family members living overseas, placing additional emotional and financial pressure on already vulnerable workers.
The Authority also noted that by underpaying staff, the business gained an unfair commercial advantage over competing restaurants that complied with New Zealand employment laws and paid staff correctly.
Why this case matters
New Zealand relies heavily on migrant workers across industries including hospitality, construction, horticulture, aged care and agriculture.
Most employers follow employment law and provide fair workplaces. However, cases like this demonstrate why labour inspections remain an important part of protecting vulnerable workers and maintaining fair competition within industries.
When businesses fail to pay legal wages or exploit staff, compliant employers can also be disadvantaged because they cannot compete with artificially reduced labour costs.
Employment experts have consistently argued that strong enforcement protects both employees and honest businesses that follow the law.
What workers should know
Under New Zealand law, every employee is entitled to minimum workplace protections regardless of nationality or visa status.
These include:
- Receiving at least the legal minimum wage.
- Being paid for every hour worked.
- Receiving annual leave and public holiday entitlements.
- Having accurate wage and time records maintained by the employer.
- Working under a written employment agreement.
Workers who believe they have been exploited can seek confidential assistance through the Ministry of Business, Innovation and Employment (MBIE).
MBIE encourages reporting
MBIE is encouraging anyone who believes they, or someone they know, has experienced unfair treatment in the workplace to contact its confidential contact centre on 0800 20 90 20.
Officials say concerns will be handled in a safe environment and that reporting suspected exploitation helps protect vulnerable workers while supporting fair employment practices across New Zealand.
As authorities continue increasing enforcement activity, this latest Employment Relations Authority ruling sends a clear message that serious breaches of employment law can result in substantial financial penalties for both businesses and individual directors.
References
- Ministry of Business, Innovation and Employment (MBIE) Media Release, 24 June 2026.
- Employment Relations Authority.
- Employment Relations Act 2000.
- Labour Inspectorate, Ministry of Business, Innovation and Employment.
