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Indian clothing retailers ordered to pay $60,000 for intimidation

19 January 2017

The Employment Relations Authority (ERA) has ordered three owner-operators of Auckland clothing retailers Khoobsurat Collections/Naari Collections Ltd to pay $60,000 for intimidating two of their previous employees.

The ex-employees were serving as witnesses in a Ministry of Business, Innovation and Employment investigation.

Directors Neelam Ahuja, Chirag Ahuja, and officer Rhythm Ahuja have been ordered to personally pay penalties of $20,000 each.

This decision was made separate to a previous ERA determination that the three directors be personally liable for $68,783 in unpaid wages and holiday pay.

In that case, employees claimed the Ahuja family often paid in cash and asked them to sign time records stating they only worked 20 hours a week.

Both decisions were ordered after the Indian retail clothing stores went into liquidation.

The two ex-employees claimed they were subject to threats by unknown men in connection with their appearances as witnesses in the ERA investigation. Both employees were put under pressure to forgo giving evidence. The ERA found that the three directors were ultimately responsible for the threats and for attempting to obstruct case proceedings.

“This decision relates to an action bought by the Authority on its own motion and sends a strong message the Labour Inspectorate will not tolerate intimidation,” says Labour Inspectorate Regional Manager Loua Ward.

“Safety is paramount and witnesses need to feel confident in coming forward so that the Labour Inspectorate can take action against unscrupulous employers who continue to take advantage of workers.

“It is in the public interest to impose penalties that not only punish employers who attempt to obstruct judicial processes, but also act as a deterrent to others who may contemplate engaging in such abhorrent behaviour.”

The Ministry of Business, Innovation and Employment encourages anyone in a similar situation, or who knows of anyone in such a situation, to call its contact centre confidentially on 0800 209020.

Last updated on the 16th September 2019