Indian restaurant owner must pay $400,000 for worker exploitation

AUCKLAND, June 25, 2026 — An Auckland Indian restaurant and its former owner have been ordered to pay almost NZ$400,000 after authorities found migrant workers were systematically exploited, forced to work up to ninety hours a week while being paid for about thirty hours.

The Employment Relations Authority (ERA) ruled against The Indian Taste Ltd and its sole director, Krishna Khandelwal, after a nine-month investigation found breaches of multiple employment standards, including failing to pay minimum wage, unlawful wage deductions and unpaid leave entitlements. 

Major penalty highlights worker exploitation

The ERA ordered the restaurant to pay NZ$199,529 in unpaid wage arrears to seven affected employees. Khandelwal personally faces a NZ$177,300 penalty for his role in the breaches, with an extra NZ$35,000 to be shared equally among the workers. 

Employees were regularly made to work between sixty and ninety hours per week, yet were only paid for around thirty hours of work. Some were also made to work one to two weeks without pay when they first joined the business. 

Authorities cite vulnerability of migrant workers

Labour Inspectorate migrant exploitation manager Sam Mills said the staff were vulnerable and often had limited English or understanding of New Zealand employment law, making them easy targets for exploitation.

“This was an egregious case of migrant exploitation where vulnerable workers were ruthlessly exploited for the personal gain of the company and its owner,” Mills said. 

The ERA’s ruling underscores that systematic underpayment and failure to meet legal employment standards carry significant consequences, intended to deter similar abuses in New Zealand’s hospitality sector.

Workers affected by potential employment breaches are encouraged to reach out to the Ministry of Business, Innovation and Employment for confidential assistance.