Shop Workers Awarded $590k Over Exploitation and Unjustified Dismissal
Workers Describe ‘Mental Torture’ and Exploitation in Employment Case
A recent determination by the Employment Relations Authority (ERA) has found that Fiji Food Distributors NZ Limited (FFDL) and its directors seriously breached New Zealand’s employment laws, including employee exploitation and unjustified dismissal.
The case, formally recorded as [2025] NZERA 659, involved several Christchurch-based shop workers employed at a grocery store operated by FFDL. The employees testified that they were made to work up to ten hours a day, six days a week, without lawful payment for overtime, annual leave, or statutory breaks.
In their statements, workers said they were treated “like slaves” and suffered “mental torture” under their employers’ direction. The ERA accepted this evidence, concluding that the company failed to meet even the most basic minimum employment standards under New Zealand law.
The workers’ experience was first brought to public attention in an article by The Press, titled ‘Treated like slaves’: Shop workers describe ‘mental torture’ in employment case, which detailed their ordeal and the subsequent legal proceedings.
Unjustified Dismissal and Unlawful Premium Payment
The ERA found that when Fiji Food Distributors NZ Ltd sold its business, the employees were unjustifiably dismissed without proper consultation or redundancy procedures. One worker was further exploited after being forced to pay an unlawful $8,000 premium to obtain employment — a serious breach of the Wages Protection Act 1983 and Employment Relations Act 2000.
Authority Member Rachel Larmer ruled that the affected workers were entitled to lost wages and compensation for humiliation and distress caused by the employer’s conduct. The decision reinforces that coercive and exploitative practices have no place in New Zealand workplaces.
Protecting Vulnerable Workers in New Zealand
This case highlights the risks faced by migrant and vulnerable workers in retail and service sectors, and the importance of enforcing fair work standards. Employers who fail to comply with employment laws risk substantial financial penalties and lasting repetitional damage.
Employees who believe they are being exploited, unfairly treated, or dismissed without cause should seek advice from a qualified employment law specialist. Taking early action can prevent further harm and ensure that workers receive the wages, respect, and rights they are entitled to under New Zealand law.
$590k + In Awards & Damages
In settlement of the personal grievances and wage arrears claim Fiji Food Distributors NZ Limited must pay:
$85,918.52 in wage arrears to Mr S Prasad.
$136,802.31 in wage arrears to Mr Lal.
$161,552.59 in wage arrears to Mr Verma.
$72,090.93 in wage arrears to Mr M Prasad.
$8,000 for an unlawful premium to Mr Verma.
$32,000.00 to each applicant for compensation pursuant to s 123(1)(c)(i) of the Employment Relations Act 2000.
Need Help with an Employment Dispute?
If you believe you’ve been unfairly dismissed, underpaid, or subjected to workplace exploitation, our experienced employment lawyers can help. We provide clear advice, strong representation, and support to ensure your rights are upheld.
Contact us at info@employmentlaw.co.nz or call +64 21 242 3200, Monday to Friday 8:30am–5:00pm, or visit us at 350 Jackson Street, Petone, Wellington.
