The “vulnerable” workers, many of whom had limited English and little understanding of New Zealand employment law, were “ruthlessly exploited for the personal gain of the company and its owner”, Labour Inspectorate migrant exploitation manager Sam Mills said.
“These breaches were persistent, deliberate and designed to extract labour at an unlawful discount.”
The Inspectorate received multiple complaints about the breaches between March and December 2024 and the resulting penalties followed a nine-month investigation, Mills said.
The standards breached included failing to pay minimum wage, unlawful wage deductions, failing to pay annual holiday and alternative holiday entitlements, requiring workers to pay premiums to secure employment and failing to keep accurate wage and leave records.
The “significant” penalty imposed was a “clear deterrent to employers who seek to take advantage of vulnerable people trying to build a life in New Zealand”, Mills said.
Khandelwal was in control of the actions of The Indian Taste during the relevant period, ERA Member Matthew Piper said.
“As the shareholder of The Indian Taste, Mr Khandelwal received a financial benefit for his actions by underpaying workers and in doing so also failed to compete fairly with other businesses providing similar products and who complied with the law.”
The harm extended well beyond unpaid wages, with exploited workers forced to borrow money at high interest, take personal loans and unable to support family overseas, Piper said.
Anyone who thinks they or someone else has been treated unfairly in the workplace can call the Ministry of Business, Innovation and Employment’s contact centre on 0800 209 020 where their concerns will be handled in a safe environment, the ministry says.