Reza Abdul-Jabbar appealed the fine originally imposed by the Employment Relations Authority in April last year after he exploited three migrant employees and “invented” records.
Authority member Alastair Dumbleton found Abdul-Jabbar and Rural Practice Limited (RPL) failed to pay the workers minimum wage, made unlawful deductions from their pay and kept poor records among other breaches.
This month in the Employment Court, Abdul-Jabbar, previously celebrated for his work as Imam of the Invercargill mosque, appealed the hefty fine imposed for the breaches.
He argued the authority member failed to take into account his financial situation and he was not given enough credit for the support he provided to the employees whose vulnerability was overstated.
A main point of appeal was Abdul-Jabbar’s claimed inability to pay the large penalty.
He filed a declaration which said he earned about $60,000 per year and did not own anything in his name.
But Judge Joanna Holden found the evidence did not support an inability to pay.
A search of local councils’ rates information showed Abdul-Jabbar, his company and associated entities owned many properties, worth $15 million in total, Judge Holden’s decision said.
While most of the properties had mortgages in place, totaling $8.5m, properties with a combined value of more than $2.5m were mortgage free.
The judge found that while the financial structure of the business was “somewhat complex” and Abdul-Jabbar was servicing debts, the situation did not warrant a discount greater than the 10% originally allowed by the authority for the “stretched” financial position of the man and his company.
The Authority also considered that Abdul-Jabbar was ordered to re-pay $52,056 to two staff members, in addition to $64,387 voluntarily handed over after the investigation began.
“The late and partial performance of statutory duties does not justify a reduction in penalties, particularly after investigation into the breaches has ensued,” the decision said.
Abdul-Jabbar also argued he was not given enough credit for the kindness he had shown the employees, but Judge Holden disagreed.
“The Authority said the power imbalance between Rural Practice Ltd and the employees was far reaching, exacerbated by Mr Abdul-Jabbar’s control over the employees’ accommodation, and integration into the community, and his position as an Imam in his and the employees’ shared Muslim faith,” the Employment Court decision noted.
“Mr and Mrs Abdul-Jabbar showed benevolence, kindness, empathy and other virtues in their relations with the three employees, but [the authority] noted that, at the same time they knowingly deprived them of statutory and contractual entitlements and wilfully deceived them.”
Judge Holden concluded the original $215,000 penalty was appropriate and dismissed Abdul-Jabbar’s appeal.
“The level of penalties is proportionate having regard to the multiple, systemic, and intentional breaches found by the Authority, as well as the financial impact of those breaches,” she said.
She noted the ERA found Abdul-Jabbar “knowingly disregarded the law governing employment and took advantage of the employees because they were not from New Zealand, but from Indonesia where Mr Abdul-Jabbar also was from.”
The issue of who should cover legal costs was left for the parties to sort out between themselves.
Earlier this year Abdul-Jabbar copped a further $15,000 fine from the ERA after it was found he had interfered with the labour inspector’s investigation.
Abdul-Jabbar also raised the issue that the authority member was biased as he previously worked for the Labour Inspectorate.
The Employment Court ruled however, that this was a procedural issue which required a separate hearing, not a ground for appeal.
