A prominent Scottish restaurateur “exploited” migrant staff and threatened to withdraw support for a chef’s immigration application unless he signed an agreement to pay £4000 if he ever left the business.

Rahul Randev, who owns The R Group, a restaurant firm in East Dunbartonshire, pressured worker Lekanath Fuyal to sign the undertaking when he asked for a letter confirming his employment status.

He also failed to pay Mr Fuyal, originally from Nepal, the minimum wage and refused to pay him for overtime which regularly ran to an extra 15 hours per week.

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Mr Fuyal eventually resigned after he did not receive any wages for weeks and went on to lodge claims at an employment tribunal for constructive dismissal, breach of contract, and unpaid wages.

The 38-year-old won his case and was awarded £8,658 by employment judge Mary Kearns.

Judge Kearns said that Mr Randev – who owns restaurants such as Oregano in Bishopbriggs, Garvie & Co in Milngavie and The Grove in Lenzie – was “not a frank and truthful witness” during the hearing.

She also criticised the firm’s treatment of migrant staff, saying: “The claimant and the other migrant employees employed by [The R Group] were not as free to change employment as other staff because of their requirement for immigration sponsorship.

“They were engaged for 40 hours per week but required to work hours far in excess of their contractual hours for no additional pay. It is difficult to escape the conclusion that they were thereby exploited.”

Mr Fuyal came to the UK in 2010 and began working at The Eagle Hotel and Oregano restaurant in February 2012. He was contracted to work 40 hours per week but normally worked 55 hours with no additional pay.

In 2014, he and other kitchen staff raised this with Mr Randev and instead of paying them for the extra hours, he decided to include them in the arrangements for tips so they were paid an extra £40 in cash.

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In September 2015, Mr Fuyal asked Mr Randev for a letter confirming his ongoing employment so that he could submit it as part of his application for indefinite leave to remain in the UK (ILR).

The tribunal judgment states: “Mr Randev indicated that the claimant would have to ‘sign a form’ before he would give him the letter.

“He made it clear to the claimant that he would only get his letter for the ILR if he signed the undertaking and if he did not sign it his employment may not continue.”

The document stated that if Mr Fuyal’s employment ended, he would be liable “for the cost of your ILR status (and all other previous costs associated with your immigration)”.

It estimated that this would amount to £4,200, however, Mr Fuyal had paid his own visa fee and the fee for his ILR application.

The judgment added: “[Mr Fuyal] therefore did not understand how the £4,200 referred to in the undertaking had been calculated and he was given no supporting evidence.

“However, Mr Randev told him that if he did not sign it then the respondents would not complete the letter he needed to secure his ILR. He implied that the claimant’s employment may not continue if he refused to sign.

“The claimant accordingly signed the document. He felt coerced into doing so and did not consent to it voluntarily.”

When he later told the businessman that he was leaving the firm, Mr Randev said “how can you leave?” and reminded him of the agreement. The company also threatened the worker with a debt collection agency.

A spokesman for The R Group said the tribunal, which took place in 2018, was a “salutary experience”.

He added: “In our 30+ years in business, we have employed hundreds of staff and have never faced any such allegations before or since.

“While we disagreed with many of the findings, we have since significantly strengthened our systems and processes to ensure we are demonstrably operating to the highest possible standards.”