Migrant workers paid $11 an hour as Upper Hutt car dealer faces $170,000 penalty

An Upper Hutt car dealer has been ordered to pay more than $170,000 after exploiting two migrant workers who were underpaid and denied basic employment protections.

Autopride Cars Limited was fined $100,000 and ordered by the Hutt Valley District Court to pay $70,654.06 in reparations.

The company was convicted in May on two charges of exploiting temporary or unlawful workers over its treatment of two migrant workers in 2023. 

“The investigation found that the workers’ immigration status was used to control them and keep them silent,” national manager investigations Jason Perry said.

Immigration New Zealand found the workers had arrived in New Zealand on visitor visas before being recruited by the company.

They were made to work long hours for cash without employment agreements, tax registration or basic worker protections, and housed in unsafe conditions.

Its employer accreditation was also revoked, preventing the company from employing migrant workers under the Accredited Employer Work Visa scheme in future.

“This case shows how migrant exploitation works in real life, with people being kept quiet through fear and pressure” says Jason Perry. “Exploiting migrants is not ‘doing business’. It is criminal behaviour, and we will pursue it to hold those responsible to account," Perry said.

Investigators found both workers were working at least six days a week, usually for about nine hours a day, while being paid $100 in cash each day.

That amounted to an effective hourly rate of about $11, below the minimum wage at the time.

The workers were also paid irregularly and had to repeatedly ask for their wages so they could buy food and other personal items.

Immigration New Zealand said company managers had repeatedly told the workers they would arrange work visas and asked them to provide documents for the process.

However, no visa applications were lodged or processed, and the workers were instead pressured to continue working despite not having lawful work status.

“One worker was instructed to hide from Immigration New Zealand officers during a compliance visit and pressured not to speak to authorities,Perry said.

“The other felt unable to leave their job because of pressure from management and concern for a family member who also worked for the company.”

Perry said employers who abuse the system should expect significant consequences.

“It is a reminder that employers must meet the standards expected of those entrusted to hire migrant workers.

“If members of the public see migrants living or working in unsafe or inadequate conditions, being underpaid, or being intimidated by an employer, we want you to speak up.”

Both workers later left the company following Immigration New Zealand intervention, citing continued exploitation and concerns for their safety.