‘Employers can’t avoid legal obligations by selling business’
The Employment Relations Authority has ordered the Noori family and their business, Indian Heaven Ltd, to pay $118,799 in penalties for employment law breaches.
Earlier this year, husband and wife Sayed and Najima Noori and their daughter Fatima Noori were ordered to pay $41,688 in minimum wage and holiday pay arrears to seven former employees, including one who was owed nearly $18,000, of two Christchurch restaurants they operated.
This amount is still outstanding and owed in addition to the penalties.
The Noori family had sold the Indian Heaven restaurants and set up a new takeaway business venture, Noori’s NZ Ltd. It is trading as Kabul Kebab and Souvlaki on Selwyn Street, Christchurch. Fatima Noori is listed as the director.
“Employers cannot avoid their legal obligations by selling their business,” says Labour Inspectorate Regional Manager Jeanie Borsboom.
“Employment law allows Inspectors to pursue employers personally for penalties and money owed to workers, even if their business no longer exists.”
The Nooris are personally liable for $47,199 of the penalties and all of the arrears.
“This determination also sends a strong message that if employers continue to ignore their obligations, including not paying determined wage arrears, they risk significantly higher penalties – in this case nearly three times higher than the arrears owed to the exploited workers.”
With the increasing level of penalties and orders for payment of significant arrears to workers, the Labour Inspectorate now uses a dedicated unit to systematically pursue recovery of these monies.
“Consumers also have a role to play in upholding employment standards by voting with their feet. They should consider how businesses treat their employees and meet their obligations before buying from them,” says Ms Borsboom.
The government is taking action to address the exploitation of temporary migrant workers in New Zealand, and wants feedback on a number of proposals.
To read the proposals and have your say, you can go to: mbie.govt.nz/exploitationreview . The closing date for feedback on the proposals is 5pm, 27 November, 2019.
