Underpaid migrant wins $34k after feeling like 'prisoner' at Otago hotel pub

A woman who worked at the The Criterion Club Hotel in Manuherikia/Alexandra. has been awarded $34,000 after she was chronically underpaid.
A woman who worked at the The Criterion Club Hotel in Manuherikia/Alexandra. has been awarded $34,000 after she was chronically underpaid. Photo credit: Newshub.

A migrant worker who was exploited by their Ōtākou/Otago employer for nine months says she felt like "a prisoner" while working there.

The woman, who wanted to stay anonymous, said she worked 50 to 60 hours weekly, six days a week, but was only paid for 30.

"I have never seen a jail, but I felt I was a prisoner. I was sorry I had ever come to New Zealand. It was a very emotional time and I just wanted to leave," she said.

She had been employed at Criterion Club Hotel in Manuherikia/Alexandra between June 2019 and February 2020.

The venue is a bar, restaurant, and hotel with gambling and TAB facilities.

The woman said she and her husband felt trapped because they lived in accommodation on-site, as part of the work agreement.

Had she resigned, the pair would've been homeless.

"My work situation had a negative effect on my family and social life."

After nine months there, the woman resigned and asked for her final holiday pay, but her employers refused. They kept making excuses, so she went to the Labour Inspectorate for help.

The Inspectorate used external EFTPOS data, plus pokie machine and TAB terminal data, to find that the business 4S Hospitality had under-recorded the woman's hours - meaning she was substantially underpaid.

The case was deemed a "serious breach" and passed onto the ERA (Employment Relations Authority).

Simon Humphries, the Labour Inspectorate's head of compliance and enforcement, said employers taking advantage of workers is a concern.

"Fortunately, the complainant in this case did the right thing by reporting the abuse and our team was able to help."

As a result, 4S Hospitality was fined $24,000.

Kuljinder Singh Sidhu, who hired the woman and helped run the business, was also fined $12,000.

The ERA found although he didn't own the business, he knew hours worked and holiday pay weren't being properly recorded. 

The woman was awarded $34,270 in unpaid wages plus interest.

Humphries hoped tempted employers would think twice.

"Exploitative employers can expect to be heavily penalised for their wrongdoing."

The woman recommended anyone who felt they were not being treated fairly at work to go to the "wonderful" Labour Inspectorate.

"Doing so changed my life and I now love this country because they looked after me," she said.