A Southland dairy farmer and former imam who was found to have exploited his migrant workers has lost an appeal against the $215,000 in penalties he and his company were ordered to pay.

For four years, Reza Abdul-Jabbar and his company, Rural Practice Limited (RPL), did not pay workers the minimum wage, inappropriately paid holiday and leave entitlements, made unlawful deductions from employees’ pay packets, made workers pay premiums and failed to keep accurate employment records.

The Employment Relations Authority (ERA) then found Abdul-Jabbar and RPL had obstructed the authority’s investigations and penalised him a further $15,000 earlier this year.

Abdul-Jabbar and the company went to the Employment Court to appeal against the penalties from the first determination.

They argued the $215,000 penalty was excessive because the judge’s starting point was too high, and it should have been reduced because of their financial situation.

They also argued that the ERA did not recognise the support they gave their workers, including accommodation and immigration help; that the ERA did not take into account that some employment breaches resulted in no financial loss for employees; and that the vulnerability of the workers was overstated.

Abdul-Jabbar and his company went back to court to appeal against the penalties from the first determination. Picture / Brett Phibbs

Employment Court Judge Joanna Holden disagreed.

She said the starting point for penalties was open to the authority, financial incapacity was not established, support given to employees was not a mitigating factor, and the employees were vulnerable.

“There was a clear imbalance of power between the employees and Mr Abdul-Jabbar.

“The plaintiffs took advantage of the employees as new immigrants from Indonesia, who lacked knowledge of local law and employment requirements in New Zealand.

“The authority also noted some other matters that disadvantaged the employees; they were vulnerable workers.”

Holden dismissed the appeal by Abdul-Jabbar and RPL, saying, “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”.

The Labour Inspectorate’s southern region compliance manager, Brendon Strieker, said the court’s decision reinforced that employers could not hide behind complexity or goodwill.

“There will be consequences for those who choose to exploit their workers for financial gain.”

Abdul-Jabbar was a community and religious leader who acted as a spiritual adviser and mentor for at least one of the three workers he exploited. He was previously an imam at a mosque in Invercargill.

Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.