The authorities in New Zealand are investigating a restaurant for allegedly offering workers less than $4-an-hour in wages, which is against the existing laws.

The restaurant has been taken to the Employment Relations Authority after allegations that it was paying less than $4 per hour to some of its workers. The Ministry of Business, Innovation and Employment has now filed a complaint against 15 companies linked with the restaurant chain following allegations that the restaurant paid $256 for a 70-hour working week.

The Ministry's Labour Inspectorate had asked the restaurant to provide wages and time records, employment agreements and holiday and leave records for around 100 staff but the owners failed to provide the required information by the deadline set by the inspectors. Each firm associated with the restaurant might face a maximum penalty of $20,000 for each failure under the Employment Relations Act.

Labour Inspectorate northern manager David Milne, "Most fair-minded New Zealanders do not support labour exploitation. By breaking the law, these businesses gain an unfair advantage over their competitors. I would also encourage anyone in this situation or who knows of people in this situation to phone our call centre on 0800 20 90 20 where concerns will be handled in a safe environment."