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Thursday, November 20, 2025

Worker recovers wages after systematic underpayment due to immigration vulnerability - HRD America

ERA orders company directors to be equally liable for breaches of employment standards

The Employment Relations Authority (ERA) found that a Turkish café worker was not unjustifiably dismissed after 17 months of sick leave, but awarded him over $43,000 in unpaid wages and compensation, after finding that his employer had engaged in unfair bargaining by repeatedly reducing his pay rate while exploiting his language difficulties and vulnerable immigration status.

The worker had been employed at the café for approximately 13 years and claimed unjustified dismissal, unpaid wages for hours worked beyond 40 per week, and various disadvantage allegations.

The employers denied the claims, with proceedings delayed for years due to representation changes, communication issues, and company liquidation.

Employment history and pay reduction pattern

The worker, a Turkish national seeking long-term residency, was first employed at the Dunedin café in 2007, initially without an employment agreement at $700 per week ($14 per hour).

He worked 9:30 AM to 3:00 PM, then returned for evening shifts 5:00 PM to 10:00 PM over six days, claiming he worked on average 53 hours weekly.

The first employment agreement signed in September 2010 described the position as Assistant Chef with wages of $26,000 annually.

The ERA found two key changes occurred - the job title was changed and the hourly rate was reduced from $14 to $12.50, effectively reducing the annual salary from $36,400 to $26,000, without...



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