The owner of a BP service station in Hastings is more than $250,000 out of pocket after not paying two staff members the minimum wage or holiday pay, and forcing them to sleep on the floor.
Jag Rawat has been ordered to pay the two staff members $132,000 in arrears and $120,000 in penalties after a Labour Inspectorate investigation.
Along with not receiving holiday pay or the minimum wage, they were subjected to unlawful premiums being deducted from their pay and were at times working up to 16 hour shifts, with lesser hours falsely recorded in the business's records.
Labour Inspectorate regional manager Loua Ward says it was alarming to see a franchisee operating under such a well-established brand mistreat and underpay their staff.
"The pair was made to live in accommodation provided by (Rawat) and pay excessive amounts in rent, despite poor living conditions where they were required to sleep on the floor," she said.
"The employees continuously received threats from Mr Rawat saying that he would cancel their visas and they'd be forced to leave New Zealand if they spoke up about the mistreatment.
"Mr Rawat also threatened trouble in the employees' home countries on return."
The Inspectorate said their working conditions "verged on slavery".
"Migrant workers are vulnerable in New Zealand and may not always be aware of their rights, or may be taken advantage of, which we've seen in this case," Ms Ward said.
"Mr Rawat saw himself in a position of power, and used this to his employees' detriment."
Rawat previously pleaded guilty to eight charges in the Napier District Court relating to falsifying immigration documents and misleading Immigration New Zealand.
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