Indian Restaurant Owner Krishna Khandelwal Ordered To Pay Nearly USD 240,000 for Exploiting Migrant Workers in New Zealand

An Auckland-based Indian restaurant and its former owner have been ordered to pay nearly USD 240,000 following a government investigation that exposed the systematic exploitation of migrant workers. The Employment Relations Authority (ERA) ruled that The Indian Taste Ltd and its former director, Krishna Khandelwal, committed multiple severe breaches of New Zealand labor laws. Investigators found that staff members were routinely forced to work up to 90 hours a week while receiving pay for only a small fraction of their time.

Systematic Underpayment and Penalties

Under the ERA's decision, the restaurant must repay a total of USD 120,000 in outstanding wages to seven affected workers. In addition to the back pay, Khandelwal has been personally fined approximately USD 106,000 for his direct role in the violations. The tribunal also ordered an additional USD 21,000 compensation payment to be distributed equally among the exploited employees.

The severe penalties follow a targeted nine-month inquiry sparked by several formal complaints submitted between March and December 2024. Investigators established that employees routinely clocked between 60 and 90 hours each week, but the company's payroll systematically capped their compensation at roughly 30 hours. Furthermore, the inquiry revealed that new staff members were forced to complete up to two weeks of initial labor entirely without pay. Indian-Origin Man Gagandeep Singh Jailed for 34 Years in UK for Kidnap, Torture and Rape of Woman.

Targeting Vulnerable Workers

According to New Zealand’s Labour Inspectorate, the restaurant targeted individuals who were poorly positioned to defend their rights. Sam Mills, the inspectorate's migrant exploitation manager, noted that the affected employees were highly vulnerable due to limited English language proficiency and minimal understanding of New Zealand employment legal frameworks.

“The workers were ruthlessly exploited for the personal gain of the company and its owner,” Mills stated. He characterized the practices as persistent, deliberate, and explicitly designed to extract labor at an unlawful discount. Who Is Neal Mohan? Here’s All About Indian-Origin YouTube CEO Named TIME’s CEO of the Year.

The formal investigation uncovered a broad pattern of regulatory non-compliance. Beyond the extreme hours and withheld wages, the restaurant failed to pay the statutory minimum wage, made unlawful deductions from worker paychecks, and denied employees their legally mandated annual and alternative holiday entitlements. The business was also found guilty of charging premium fees to workers simply to secure their employment, while failing to maintain accurate wage and leave logs.

Personal Financial Benefit

ERA member Matthew Piper emphasized that Khandelwal maintained absolute operational control over the company and used his position to secure personal financial advantages by underpaying his workforce. Piper stated that by reducing labor costs through unlawful means, Khandelwal failed to compete fairly with other compliant businesses within the local market.

The tribunal's findings also highlighted that the impact on the staff extended far beyond direct financial losses. Lacking their rightful income, several workers were forced to secure high-interest personal loans to stay afloat while attempting to send financial support to family members overseas.

The Labour Inspectorate has indicated that the substantial monetary judgment should serve as a clear warning to other business owners attempting to exploit vulnerable migrant workforces within New Zealand.

(The above story first appeared on LatestLY on Jun 26, 2026 09:34 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).