HERG supplied painters and plasterers to construction sites in Auckland and Christchurch before going into liquidation in March last year.
Jeanie Borsboom, acting head of the Labour Inspectorate, said the ERA’s ruling sent a clear message that employers and company directors who breached employment standards could be held personally accountable.
“This case involved significant underpayments, unlawful employment premiums and serious record-keeping failures.
“Employers cannot avoid their obligations through inadequate systems or poor record-keeping.
“The Labour Inspectorate will continue to investigate allegations of worker exploitation and take enforcement action where employers seek to profit at the expense of vulnerable workers.”
ERA member Robert Davies said the breaches were serious and had a significant impact on the workers.
“The premiums are especially serious because the sums were substantial and the payments were connected to the prospect of employment in New Zealand.
“I am satisfied that Tran was actively involved in HERG’s breaches and had knowledge of the essential facts constituting them.”
Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.