SSM Investments, owner face more fines for exploiting workers
The fines followed an earlier ERA order to the business to pay five former employees $147,001 in wage arrears.
A restaurant and takeaway business in Auckland and Cromwell, along with its owner Shazneen Shariza Khan, have been fined $130,000 for exploiting workers. The Employment Relations Authority (ERA) ordered the penalties following an investigation into multiple employment standard breaches. Khan and the company were found guilty of failing to pay the minimum wage, sick leave, and holiday pay, among other violations.
The ERA member Philip Cheyne highlighted the inherent inequity of power in the employment relationship, stating that such actions undermine employment standards. The Labour Inspectorate's investigation was initiated due to complaints from Cromwell branch employees. The fines, totaling $90,000 for the company and $40,000 for Khan, were levied after a freezing order in October 2025 secured funds to cover the arrears, which were subsequently paid to the affected workers.
The fines aim to serve as a strong deterrent to employers exploiting vulnerable workers, ensuring they face significant financial consequences. The breaches, including one case where an employee was owed over $78,500, including $49,000 in unpaid wages and $11,000 in unlawful deductions, created substantial stress and hardship for the affected workers.
The Labour Inspectorate emphasized the significant power imbalance in these employment relationships, warning that employers exploiting vulnerable workers and disregarding minimum employment standards will face enforcement action.
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