Full Breakdown
Dosanjh Horticulture Limited and Director Fined $135,000 for Labour Law Breaches
7/3/2026, 12:10:52 AM
Court-Ordered Penalties
The Employment Relations Authority (ERA) ordered Dosanjh Horticulture Limited and its director to pay a total of $135,000 after the Ministry of Business, Innovation and Employment (MBIE) identified multiple breaches of New Zealand’s employment standards. The violations included a “wage-banking” scheme, failure to keep accurate employment records, incorrect calculation of leave entitlements, and the requirement that workers perform unpaid hours to offset previously paid but unworked time. Four migrant workers were owed $61,312 in arrears; $20,000 of the penalties must be paid directly to those workers.
Background: Zespri Compliance and MBIE Investigation
The Labour Inspectorate learned of the breaches after the affected workers lodged complaints with Zespri, New Zealand’s kiwifruit marketing board. Following an investigation, Zespri cancelled the company’s Compliance Assessment Verification, effectively barring Dosanjh Horticulture from marketing any fruit from orchards supplied by the firm. MBIE noted that without Zespri’s verification the company could not operate in the kiwifruit sector.
Key Figures and Their Statements
Kevin Finnegan, lead inspector for strategic alignment at the Labour Inspectorate, said the case underscores the need for employers to meet legal obligations and highlighted the vulnerability of the workers. Authority member Sarah Kennedy-Martin described the breaches as “serious” and emphasized the high dependency of migrant workers on their employer’s visa sponsorship, which enabled the payroll structure that concealed underpayments. MBIE reiterated that the penalties serve as a warning to other growers.
Data and Financial Penalties
- Total penalties: $135,000
- Arrears owed to four workers: $61,312
- Direct payment to workers: $20,000
- Unlawful premium charged to one worker: $4,500
- Number of workers affected: four (all migrant)
Why It Matters
The enforcement action removed Dosanjh Horticulture’s ability to sell kiwifruit through Zespri, illustrating how labour compliance directly impacts market access. The penalties also signal heightened regulatory scrutiny of employment practices in New Zealand’s horticulture sector, particularly where migrant labour is employed under visa-tied arrangements.
Conflicting Reports & Gaps
The source refers to the company both as Dosanjh Horticulture Limited and as “DHL,” creating ambiguity about the exact legal entity responsible for the breaches. The director’s name is not disclosed, and no information is provided about any appeal or subsequent compliance measures beyond the ERA order.
Verbatim Quotes
- “This made it impossible for the company to operate in the kiwifruit industry because Zespri would not market any fruit from orchards for which DHL had supplied labour,” — Ministry of Business, Innovation and Employment (MBIE)
- “This company and those who owned it are well known in the kiwifruit industry, which makes their flouting of minimum employment standards all the more unacceptable,” — Kevin Finnegan, Lead Inspector for Strategic Alignment, Labour Inspectorate
- “Not only did they lose the ability to operate in the kiwifruit sector, they have also been ordered to pay significant penalties.” — Kevin Finnegan, Lead Inspector for Strategic Alignment, Labour Inspectorate
- “This included the structuring of payroll and record-keeping systems to obscure underpayments, coupled with unlawful deductions and failure to meet basic entitlements such as sick leave and public holiday pay,” — Sarah Kennedy-Martin, Authority member (MBIE)
- “He said the workers were “vulnerable” and were entitled to be paid correctly and to have accurate employment records maintained.” — Kevin Finnegan, Lead Inspector for Strategic Alignment, Labour Inspectorate
What’s Next
MBIE indicated that further compliance audits of kiwifruit growers are planned, and Zespri has signalled stricter enforcement of its verification process. The ERA decision may prompt additional investigations into payroll practices across the horticulture industry.
