Louth restaurant ordered to pay over €79,000 after “egregious exploitation” of migrant worker

A Workplace Relations Commission (WRC) adjudicator has awarded €79,000 in compensation to a migrant worker who was found to have been subjected to what was described as “egregious exploitation” by a Dundalk restaurant.

The case involved Mr Vasantkumar Barot and his former employer, Madhu Foods Limited, trading as Guru Indian Cuisine, with a registered address at Park Street, Dundalk.

According to the WRC decision, Mr Barot paid almost €15,000 to secure a work permit after being promised a job as a commis chef working 40 hours per week for approximately €570 weekly.

However, the adjudication officer heard evidence that “what occurred was a deception where he was deceived about the purpose of the upfront payment.”

The complainant alleged he was required to work across multiple restaurant locations in Dundalk, Drogheda, Newry and Belfast, as well as on a farm, often working extremely long hours.

“It is alleged that he worked on average more than 90 hours a week,” the decision states, adding that his working day “began early in the morning and ended extremely late at night into the early morning.”

The WRC found that Mr Barot received irregular payments ranging from €99 to €1,000 and that his average hourly pay was as low as €1.61.

The adjudicator noted: “The Complainant asserts that during his entire employment period,  from 13/03/2023 to 04/04/2024, he did not receive payment in accordance with the [National Minimum Wage Act]. His average hourly pay rates were €2.96 and €1.61.”

While the full extent of hours worked could not be verified due to lack of records, the adjudicator still ruled the complaint well-founded and awarded €24,500 in unpaid wages based on a 48-hour working week.

“The Complainant has given credible evidence that he has worked significantly more than 48 hours per week,” the adjudication officer stated, awarding €15,000 in compensation for excessive working hours.

Further awards were made for breaches of rest periods and working time legislation, including:

• €10,000 for failure to provide daily rest periods
• €5,000 for lack of rest breaks during shifts
• €5,000 for failure to provide weekly rest

Although Mr Barot had a written contract specifying a 39-hour week and a fixed salary, the WRC found it bore little resemblance to reality.

“The fact is that contract was never honoured,” the adjudicator said, adding that it appeared to create “the appearance of lawful employment.”

A nominal €300 was awarded for breaches of the Terms of Employment legislation.

The WRC found that Mr Barot had been constructively dismissed due to the employer’s conduct.

The decision records that the worker ultimately fled the situation, describing it as “what amounted [to] economic slavery, distressed and fearful about his future.”

While a claim of racial discrimination was not upheld due to insufficient corroborating evidence, the adjudicator did find that Mr Barot had been subjected to harassment on the ground of race.

“There is no question that the Complainant was exploited,” the decision states, before concluding that harassment was proven and warranted separate redress.

An additional €15,000 was awarded, with the adjudicator describing the treatment as “most egregious.”

The WRC decision notes that the Respondent failed to attend the hearing on two separate dates.

In total, the compensation awarded exceeds €79,000, including:

• €24,500 in arrears under the National Minimum Wage Act 

• €15,000 for excessive working hours under the Organisation of Working Time Act 

• €15,000 for racial harassment under the Employment Equality Act 

• €10,000 for failure to provide daily rest periods 

• €5,000 for failure to provide rest breaks during shifts 

• €5,000 for failure to provide weekly rest periods 

• €3,120 for unpaid annual leave 

• €761.28 for unpaid Sunday premium pay 

• €532.44 for unpaid public holiday entitlements 

• €300 for breach of the Terms of Employment (Information) Act 

Responding to the findings, Neil Bruton, Director at the Migrant Rights Centre Ireland, said: 

"This decision is a significant recognition of the severe exploitation that Vasantkumar endured. He came to Ireland with hope for a better future and instead was subjected to what we described as “economic slavery”. We are glad that the WRC has taken these breaches seriously and made substantial awards.

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"Cases like this are not isolated. Migrant workers on employment permits are among the most vulnerable people in the Irish labour market. When a worker's right to remain in the country is tied entirely to one employer, the potential for exploitation is enormous. 

“We call on the State to make it easier for a worker to change employer, ensure that enforcement mechanisms are robust, that workers know their rights, and that employers who engage in such egregious exploitation face meaningful consequences."