What were the breaches?
MBIE said the case involved a wage “banking” arrangement that resulted in the workers not receiving all of their lawful entitlements.
The company failed to keep accurate employment records and calculate leave entitlements.
Workers with contracts guaranteeing them minimum hours were routinely required to work unpaid hours to offset time they had previously been paid for but not worked, MBIE said.
The amount of arrears owed to the four workers was $61,312. DHL agreed to pay it before the ERA hearing.
The authority said $20,000 of the penalties should be paid directly to the affected workers. Photo / Bay of Plenty Times
MBIE said the Labour Inspectorate became aware of the breaches after the workers complained to Zespri.
After the Inspectorate’s investigation, Zespri cancelled DHL’s Compliance Assessment Verification.
“This made it impossible for the company to operate in the kiwifruit industry because Zespri would not market any fruit from orchards for which DHL had supplied labour,” MBIE said.
‘Serious consequences’
The Labour Inspectorate’s lead inspector for strategic alignment, Kevin Finnegan, said the ERA decision highlighted the importance of employers meeting their legal obligations.
“This company and those who owned it are well known in the kiwifruit industry, which makes their flouting of minimum employment standards all the more unacceptable,” Finnegan said.
He said the workers were “vulnerable” and were entitled to be paid correctly and to have accurate employment records maintained.
Finnegan said the failure to comply with New Zealand’s employment standards had “serious consequences”.
“Not only did they lose the ability to operate in the kiwifruit sector, they have also been ordered to pay significant penalties.
“This should serve as a warning to others in the industry,” Finnegan said.
Authority member Sarah Kennedy-Martin said the breaches were serious and affected the migrant workers over an extended period.
She said one worker was made to pay a premium of $4500 for his employment with the company.
Kennedy-Martin said the workers were in a vulnerable position because their visas were tied to DHL.
“The workers’ dependency on the employer was high, and the employer controlled all aspects of the employment relationship.
“This included the structuring of payroll and record-keeping systems to obscure underpayments, coupled with unlawful deductions and failure to meet basic entitlements such as sick leave and public holiday pay,” she said.