A liquor store boss has been fined a record $1.55 million for his involvement in "deliberate and sustained" exploitation of vulnerable migrant workers
In a landmark judgement Sukhdev Singh, who owned four Liquor Centre stores, was ordered to pay $415,800 while his associated companies have to pay $1.138m.
Of that fine, $255,000 is going to five migrant employees who didn't receive minimum entitlements while working at Singh's stores between September 2015 and November 2019.
Justice Kathryn Beck said the payment is in addition to the $500,000 in arrears that has already been paid to the workers.
Labour Inspectorate head of compliance and enforcement Stu Lumsden said the fine is the "highest awarded for employment breaches to date".
Singh was also banned from operating a company for three years - the longest-ever banning order.
"The outcome is the culmination of several years of investigation work by our migrant exploitation team and reflects the seriousness and systemic nature of the offending, '' Lumsden said.
The court identified 120 discrete breaches in employment standards and banned Singh, who exercised significant influence over the management and administration of the companies. Singh was involved in 49 breaches of minimum entitlement provisions by Samra Holdings and three group companies, and these companies have been similarly banned for two years.
Singh, who has been in the retail liquor industry since 2005, had previously received an Improvement Notice from the Labour Inspectorate in 2014 for his kiwifruit business.
Lumsden said the exploitation was "deliberate and sustained" and the workers were vulnerable because they relied on Singh for their jobs and visas.
"The people involved gained substantial commercial benefit unlawfully by exploiting the employees.
"Noting the serious nature of the breaches of minimum entitlements and significant arrears owed to the five complainants, Labour Inspectors moved quickly and applied to the court for freezing orders to be placed on the employers' assets. This was the first time the Inspectorate has applied for freezing orders. This application was approved and later discharged after the employer's bank guaranteed $3 million to be held available for payment of the arrears and any penalties.
"Our inspectors have also gone a step further to ensure this information is shared with our community stakeholders such as the Allied Retail Group who operate Liquor Centre. We understand that our stakeholders have taken further action against Samra Holdings."
Lumsden said the Inspectorate believes it's in the public interest to know when employers are wittingly exploiting their staff so "workers, consumers and suppliers can make an informed decision".
