Café owner gets home detention in $335K migrant exploitation conviction

Photo: MINT IMAGES

A Murupara café owner has been sentenced to 10 months' home detention and ordered to pay $175,000 after exploiting migrant workers and providing false and misleading information to immigration authorities.

Ratha Ny, owner and director of the Bakehouse Café in Murupara, appeared at Rotorua District Court on 14 August for sentencing.

Ny pleaded guilty in March to four charges under the Immigration Act 2009 for giving false or misleading information to Immigration New Zealand.

His company, R.S.X Limited, also admitted six charges for serious breaches of employment law, including knowingly underpaying employees below the minimum wage and failing to correctly pay holiday and related entitlements.

The court fined the company $150,000 and ordered to pay $25,000 in emotional harm reparations to three victims.

The payments, made before sentencing, included $10,000 to each of two workers and $5,000 to a third. That brought the total court-imposed penalty to $175,000.

Those penalties were in addition to $160,000 in minimum wage arrears that had been repaid to affected staff before sentencing, bringing the total financial cost to the company - including fines, reparations and wage arrears - to $335,000.

Ny was sentenced to 10 months' home detention. The court initially set a starting point of 30 months in prison, reduced to 21 months after discounts were applied.

Steve Watson, general manager of Immigration Compliance and Investigation at the Ministry of Business, Innovation and Employment, said the exploitation of temporary migrant workers was unacceptable and a clear breach of New Zealand law.

"It's rare for emotional harm payments to be awarded in these cases, so this outcome is a real win for the victims," Watson said. "It sends a strong message that the emotional toll of exploitation is being recognized and taken seriously."

Under the Immigration Act, exploiting temporary migrants or those working unlawfully is a criminal offence punishable by up to seven years in prison and/or a fine of up to $100,000.

MBIE urged anyone who suspects workplace exploitation to report it immediately by calling 0800 200 088.

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