Indian migrant worker to be repaid $45K charged for Auckland job
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An Auckland company has been ordered to repay nearly $45,000 to a migrant worker after the Employment Relations Authority (ERA) found it unlawfully charged him for a job in New Zealand.
7 Solutions Limited, which operates a lawn maintenance business, has been ordered to repay $44,750 to the worker and pay a penalty of $16,000. The company's sole director, Kamal Jeet Singh, has also been ordered to pay an additional $8,000 to the worker.
ERA member Simon Greening ruled that if the company is unable to repay the $44,750 premium, Singh will be personally liable for the amount.
Labour Inspectorate investigations manager for the northern region Katriona Ikenasio described the case as a "serious exploitation of a migrant worker".
"A person who came here seeking a new life was charged a significant sum for a work opportunity that should have been free."
Greening found that the payments breached the Wages Protection Act 1983, which prohibits employers from charging workers premiums to obtain employment.
The case involved a worker who travelled from India to New Zealand in August 2023 after being offered a job by Singh. According to the ERA findings, Singh told the worker he could arrange employment and a work visa, but payment was required.
The worker subsequently made payments totalling $44,750 through various individuals connected to the director. He was employed by 7 Solutions Limited between September 25, 2023, and September 1, 2024.
The Labour Inspectorate became aware of the matter after the worker lodged a complaint.
An investigation found evidence of the payments through bank records, WhatsApp communications and witness testimony.
Greening rejected claims that the payments were family loans or unrelated transactions. Instead, he found they were directly linked to securing employment with the company. The decision noted that the director had requested the payments, the timing aligned with the worker's visa application and job offer, and the amount paid closely matched sums discussed in communications between the parties.
Although some payments were made to third parties, Greening found the company had effectively received the money through "constructive possession" because of the director's knowledge of and control over the transactions.
The Authority concluded that the company had breached the law by both seeking and receiving unlawful premiums.
Katriona Ikenasio said charging workers for jobs was illegal and had no place in New Zealand.
"Workers in New Zealand are protected by minimum employment standards, regardless of their visa status."
Ikenasio said premiums represented one of the most serious forms of worker exploitation.
“They prey on the vulnerability of migrants, both offshore and onshore, who often rely heavily on the advice and direction of employers and agents to secure employment or visas.
"In this case, the complainant transferred funds through multiple intermediaries at the direction of the company director, demonstrating a deliberate and calculated strategy."
Ikenasio explained the conduct "reflects a clear message of the inherent power imbalance in employment relationships, allowing employers to exploit both individuals and regulatory systems for their own gain".
"Enforcement outcomes in cases like this are intended to act as a strong deterrent. The Labour Inspectorate will not hesitate to utilise the full extent of its enforcement powers to hold those engaged in this type of offending accountable."
An Auckland company has been ordered to repay nearly $45,000 to a migrant worker after the Employment Relations Authority (ERA) found it unlawfully charged him for a job in New Zealand.
7 Solutions Limited, which operates a lawn maintenance business, has been ordered to repay $44,750 to the worker...
An Auckland company has been ordered to repay nearly $45,000 to a migrant worker after the Employment Relations Authority (ERA) found it unlawfully charged him for a job in New Zealand.
7 Solutions Limited, which operates a lawn maintenance business, has been ordered to repay $44,750 to the worker and pay a penalty of $16,000. The company's sole director, Kamal Jeet Singh, has also been ordered to pay an additional $8,000 to the worker.
ERA member Simon Greening ruled that if the company is unable to repay the $44,750 premium, Singh will be personally liable for the amount.
Labour Inspectorate investigations manager for the northern region Katriona Ikenasio described the case as a "serious exploitation of a migrant worker".
"A person who came here seeking a new life was charged a significant sum for a work opportunity that should have been free."
Greening found that the payments breached the Wages Protection Act 1983, which prohibits employers from charging workers premiums to obtain employment.
The case involved a worker who travelled from India to New Zealand in August 2023 after being offered a job by Singh. According to the ERA findings, Singh told the worker he could arrange employment and a work visa, but payment was required.
The worker subsequently made payments totalling $44,750 through various individuals connected to the director. He was employed by 7 Solutions Limited between September 25, 2023, and September 1, 2024.
The Labour Inspectorate became aware of the matter after the worker lodged a complaint.
An investigation found evidence of the payments through bank records, WhatsApp communications and witness testimony.
Greening rejected claims that the payments were family loans or unrelated transactions. Instead, he found they were directly linked to securing employment with the company. The decision noted that the director had requested the payments, the timing aligned with the worker's visa application and job offer, and the amount paid closely matched sums discussed in communications between the parties.
Although some payments were made to third parties, Greening found the company had effectively received the money through "constructive possession" because of the director's knowledge of and control over the transactions.
The Authority concluded that the company had breached the law by both seeking and receiving unlawful premiums.
Katriona Ikenasio said charging workers for jobs was illegal and had no place in New Zealand.
"Workers in New Zealand are protected by minimum employment standards, regardless of their visa status."
Ikenasio said premiums represented one of the most serious forms of worker exploitation.
“They prey on the vulnerability of migrants, both offshore and onshore, who often rely heavily on the advice and direction of employers and agents to secure employment or visas.
"In this case, the complainant transferred funds through multiple intermediaries at the direction of the company director, demonstrating a deliberate and calculated strategy."
Ikenasio explained the conduct "reflects a clear message of the inherent power imbalance in employment relationships, allowing employers to exploit both individuals and regulatory systems for their own gain".
"Enforcement outcomes in cases like this are intended to act as a strong deterrent. The Labour Inspectorate will not hesitate to utilise the full extent of its enforcement powers to hold those engaged in this type of offending accountable."
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