The owner of a kebab shop in Cromwell has been ordered to pay $130,000 in penalties for exploiting its workers in addition to an earlier order to pay wages owed to the workers.

SSM Investments and owner Shazneen Shariza Khan ran the Cromwell restaurant Souvlaki & Kebab Grill as well as an Auckland business.

Ms Khan was found to be personally involved in the breaches and so was liable along with the company.

The Employment Relations Authority (ERA) ordered them to pay $130,000 in penalties for exploiting workers, after the authority earlier ordered them to pay five former employees $147,001 in wage arrears.

ERA member Philip Cheyne ordered SSM Investments Limited to pay penalties of $90,000 and Khan to pay penalties of $40,000.

Their conduct "undermines implied trust and confidence obligations and statutory good faith requirements" and "demonstrates the inherent inequity of power in the employment relationship and undermines employment standards", Mr Cheyne said.

In his determination Mr Cheyne said the business had breached multiple employment standards, including failing to pay five workers the minimum wage, failing to keep accurate wage, time, holiday and leave records as well as not paying sick leave along with holiday and public holiday pay.

They were also found to have made unlawful deductions from employees wages, Mr Cheyne said in his determination.

One employee who was owed $78,000 in wages also had $11,000 in unlawful deductions for items including rent made from their wages.

The case followed a Labour Inspectorate investigation prompted by complaints from employees of the Cromwell business.

After a meeting at the ERA the business, SSM Investments Limited and its sole director Ms Khan agreed they were liable for $147,001 in arrears owed to five workers.

The workers were underpaid a total of $147,001, with individual arrears ranging from more than $7,000 to over $78,500. The breaches affected workers employed across the business's Cromwell and Auckland operations.

Funds to cover the arrears were secured after a freezing order in October 2025 and held in trust. The funds had been paid to the affected workers.

Labour Inspectorate Investigations Manager for the Central and Southern regions, Taahera Begum, said that while the business and Ms Khan had acknowledged their wrongdoing, the breaches were serious and caused harm to the workers concerned.

“The penalties should send a clear message to employers that exploiting vulnerable workers will result in significant financial consequences.

"These workers were reliant on their employer to meet basic minimum employment standards. Instead, they were underpaid, had unlawful deductions made from their wages and were denied lawful leave entitlements.”

The extent and duration of the breaches created unnecessary stress and hardship for the affected employees, Ms Begum said.

“This was sustained and egregious exploitation with one employee owed more than $78,500, including $49,000 in unpaid wages and a further $11,000 in unlawful deductions for rent, loans and other items.

"The ERA recognised the significant power imbalance that existed in this employment relationship. Employers who exploit vulnerable workers and ignore minimum employment standards can expect the Labour Inspectorate to take enforcement action."