Southland dairy loses appeal over $215k penalties in worker exploitation case

A Southland dairy business has lost its bid to overturn penalties for exploiting vulnerable migrant staff, with the Employment Court upholding a $215,000 sanction first imposed by the Employment Relations Authority last year.

What the court decided

Rural Practice Limited and its owner Reza Abdul-Jabbar appealed the size of the penalties. Judge J C Holden dismissed the appeal, finding the Authority’s starting point was open, financial incapacity was not established, and the support the employer claimed to have provided was not a reason to reduce penalties. The Court also agreed the workers were vulnerable and that there was a clear imbalance of power that was taken advantage of.

In Judge Holden’s words, the penalties are proportionate in light of multiple, systemic and intentional breaches and the financial impact of those breaches.

What the breaches were

The original ERA determination found that between December 2017 and February 2022 the employer:

• failed to pay at least the minimum wage
• did not pay holiday and leave entitlements correctly
• made unlawful deductions from wages
• required workers to pay premiums
• failed to keep accurate employment records

In July, the company and its owner were also penalised a further $15,000 for obstructing the ERA investigation.

Why this matters

Brendon Strieker, Labour Inspectorate Compliance Manager for the Southern Region, welcomed the decision, saying it reinforces that employers cannot hide behind complexity or goodwill when they fail to meet basic legal obligations. He added that there will be consequences for those who choose to exploit workers for financial gain.

If you need help

Anyone who believes they or someone they know has been treated unfairly at work can contact MBIE’s contact centre on 0800 20 90 20. Concerns are handled in a safe environment.

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References

• Ministry of Business, Innovation and Employment media release, 25 September 2025: Southland dairy farm, owner lose appeal over $215,000 penalties in worker exploitation case.
• Employment Court judgment: 2025-NZEmpC-198 Rural Practice Ltd and Abdul-Jabbar v A Labour Inspector.