Pizza Hut franchise owner to pay $150k victim reparation after immigration NZ prosecution

Lane Neave Associate Hetish Lochan discusses a recent Immigration New Zealand prosecution, part of a trend involving the exploitation of migrant workers. He encourages employers to regularly review internal processes and systems to ensure their businesses remain compliant with immigration laws, following the increasing activity in this sector. 

Hetish Lochan

In our previous article on this topic, we wrote about Immigration New Zealand’s recent imposition of a one year migrant hiring ban on 82 Burger King Stores. The ban was imposed because the company was found to have breached the Minimum Wage Act 1983 by paying a salaried manager less than the minimum wage.

Immigration New Zealand has now prosecuted a Pizza Hut franchise owner on 25 charges relating to the exploitation of migrant workers, for offences ranging from not meeting minimum employment obligations, permitting or facilitating the breach of work visa conditions, misleading immigration officers and obtaining by deception. The offending was described as ‘calculating’ and ‘systematic’ and occurred over a period of 5 years in four separate Pizza Hut stores in the South Island. The employer in this case has been sentenced to nine months home detention, 200 hours of community service and ordered to pay $150,000 in victim reparation.

This prosecution comes as no surprise and highlights increasing efforts by Immigration New Zealand (via increased compliance funding) to identify and prosecute employers guilty of migrant worker exploitation. Convicted employers are also now held personally liable in these types of prosecutions, which prevent owners and directors from simply closing down businesses to avoid paying fines.

This case again clearly sends a strong message that migrant exploitation will not be tolerated and that employers must have robust systems in place to ensure they are complying with both immigration and employment laws.

In the past, we have suggested that despite the investigative and compliance powers vested upon Immigration New Zealand under governing legislation did not have the resources to investigate every compliant, or profile/prosecute every non compliant employer. In light of the increasing activity in this space, this view is quickly changing and we now urge all employers to continuously review their internal processes and systems to ensure that they are compliant.

If you have any queries in respect of this article, please contact the author.

Hetish Lochan is an immigration law specialist with expertise across a wide range of immigration matters. He advises a number of Lane Neave’s corporate and private clients on standard visa applications (visitor, student, work, entrepreneur, investor, residence) to exceptionally complicated immigration issues (appeals, complaints, potentially prejudicial issues responses, medical waivers, character waivers). Hetish is an enthusiastic and approachable lawyer, known for his practical solutions to protect the position of his clients in a manner that fosters strong relationships and also provides highly professional service delivery in a streamlined and efficient fashion to ensure a positive outcome. Hetish holds a LLB from Victoria University, Wellington. Contact him at hetish.lochan@laneneave.co.nz

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