[New Zealand] Consequences for construction company that sacked migrant worker

A New Zealand construction company has been fined $40,000 and ordered to pay a migrant worker more than $13,000 in compensation after being found to have exploited the man who relied on his job to remain in the country but was later fired without warning, NZ Herald reports.

Civil engineer Jungbin Son had been seeking work in New Zealand while still living in Korea when he received a job offer from Auckland-based YNK Limited in 2017.

Mr Son reportedly signed an employment contract with the company in July 2017. Its terms included an annual salary of $55,992 in exchange for a 40-hour work week.

However, in July 2021 the civil engineer was fired without warning or explanation by David Kim, the husband of the company’s sole director and shareholder Bo Kyounge Bae.

After reporting these events to the Employment Relations Authority (ERA), Mr Son gave oral and written evidence detailing how he had become exhausted while working a significant number of additional hours delivering materials daily to a project site in Rotorua at the time he was sacked.

“Mr Son said he asked why his employment was being ended, but Mr Kim told him only to leave and to leave behind the company car he was using that day,” the ERA determination, released this month, stated.

Soon after starting his employment with YNK, Mr Son had reportedly been asked to work weekends and agreed as his visa was dependent on his employment. He also worked public holidays without receiving penal rates or a day in lieu.

He had considered resigning but was said to be concerned about his visa status and believed his dismissal was due to his protests about the extra hours he was working.

Mr Son claimed he was owed his final wages, the four weeks’ notice he was entitled to, accrued annual leave and that he hadn’t been correctly paid for working public holidays.

It was also reportedly alleged that YNK Limited breached statutory requirements by failing to keep wage, time, holiday and leave records and neglected the duty of care it owed Mr Son as an employee.

Following the investigation meeting, ERA member Eleanor Robinson ruled YNK had breached its obligation to act in good faith toward Mr Son.

“I note that his evidence was that he worked diligently, undertaking extensive travelling and weekend and public holiday work.

“YNK in return was expected to pay him correctly and on time. This it failed to do,” she said.

Penalties for breaches were set at a maximum of $20,000 per incident and YNK had clocked up six, Ms Robinson added.

“They are not imposed to remedy the applicant’s loss, but to punish the person who has breached a duty under the Act and to condemn that behaviour.”

In calculating the overall penalty, Ms Robinson reduced the number of breaches to four but took into account aggravating factors, including that Mr Son was a migrant worker who was entitled to be treated with respect.

“I consider that there is a need to enforce to employers the employment standards they are required to meet and that minimum entitlements are non-negotiable.

“Mr Son is a vulnerable employee, dependent on YNK for his visa and wishes to apply for residence in New Zealand. As such I find that there is a need for particular deterrence for YNK.”

Ms Robinson reportedly imposed a $40,000 penalty, $36,000 to be paid to the Crown and $4000 to Mr Son, with YNK and Ms Bae jointly liable.

She awarded Mr Son $3445.66 for his final pay, $4307.08 in lieu of four weeks’ notice, $2779.60 for accrued annual leave, and $2907.27 for working nine public holidays.

She also reportedly ordered interest be calculated on the total amount of $13,439.61 to be paid to Mr Son, with YNK and Ms Bae jointly responsible for the debt.

In addition, Mr Son was awarded $2250 towards his legal costs.

Source: NZ Herald

(Quotes via original reporting)

A New Zealand construction company has been fined $40,000 and ordered to pay a migrant worker more than $13,000 in compensation after being found to have exploited the man who relied on his job to remain in the country but was later fired without warning, NZ Herald reports.

Civil engineer Jungbin Son had been seeking work in New Zealand while still living in Korea when he received a job offer from Auckland-based YNK Limited in 2017.

Mr Son reportedly signed an employment contract with the company in July 2017. Its terms included an annual salary of $55,992 in exchange for a 40-hour work week.

However, in July 2021 the civil engineer was fired without warning or explanation by David Kim, the husband of the company’s sole director and shareholder Bo Kyounge Bae.

After reporting these events to the Employment Relations Authority (ERA), Mr Son gave oral and written evidence detailing how he had become exhausted while working a significant number of additional hours delivering materials daily to a project site in Rotorua at the time he was sacked.

“Mr Son said he asked why his employment was being ended, but Mr Kim told him only to leave and to leave behind the company car he was using that day,” the ERA determination, released this month, stated.

Soon after starting his employment with YNK, Mr Son had reportedly been asked to work weekends and agreed as his visa was dependent on his employment. He also worked public holidays without receiving penal rates or a day in lieu.

He had considered resigning but was said to be concerned about his visa status and believed his dismissal was due to his protests about the extra hours he was working.

Mr Son claimed he was owed his final wages, the four weeks’ notice he was entitled to, accrued annual leave and that he hadn’t been correctly paid for working public holidays.

It was also reportedly alleged that YNK Limited breached statutory requirements by failing to keep wage, time, holiday and leave records and neglected the duty of care it owed Mr Son as an employee.

Following the investigation meeting, ERA member Eleanor Robinson ruled YNK had breached its obligation to act in good faith toward Mr Son.

“I note that his evidence was that he worked diligently, undertaking extensive travelling and weekend and public holiday work.

“YNK in return was expected to pay him correctly and on time. This it failed to do,” she said.

Penalties for breaches were set at a maximum of $20,000 per incident and YNK had clocked up six, Ms Robinson added.

“They are not imposed to remedy the applicant’s loss, but to punish the person who has breached a duty under the Act and to condemn that behaviour.”

In calculating the overall penalty, Ms Robinson reduced the number of breaches to four but took into account aggravating factors, including that Mr Son was a migrant worker who was entitled to be treated with respect.

“I consider that there is a need to enforce to employers the employment standards they are required to meet and that minimum entitlements are non-negotiable.

“Mr Son is a vulnerable employee, dependent on YNK for his visa and wishes to apply for residence in New Zealand. As such I find that there is a need for particular deterrence for YNK.”

Ms Robinson reportedly imposed a $40,000 penalty, $36,000 to be paid to the Crown and $4000 to Mr Son, with YNK and Ms Bae jointly liable.

She awarded Mr Son $3445.66 for his final pay, $4307.08 in lieu of four weeks’ notice, $2779.60 for accrued annual leave, and $2907.27 for working nine public holidays.

She also reportedly ordered interest be calculated on the total amount of $13,439.61 to be paid to Mr Son, with YNK and Ms Bae jointly responsible for the debt.

In addition, Mr Son was awarded $2250 towards his legal costs.

Source: NZ Herald

(Quotes via original reporting)