ERA Member Simon Greening imposed penalties against the company, 7 Solutions Limited, trading as Auckland City Lawns, $16,000 and its sole director Kamal Jeet Singh a further $8,000, which he must pay to the worker.
He also determined that if the company is unable to repay the $44,750 premium demanded for the job Mr Singh would be personally liable for the amount.
Mr Greening found the payments demanded breached the Wages Protection Act 1983, which prohibits employers from charging workers premiums to secure employment.
Labour Inspectorate Investigations manager for the Northern Region, Katriona Ikenasio, said charging workers for jobs is illegal and has no place in New Zealand.
Serious exploitation
“This is 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,” Ms Ikenasio said.
“Workers in New Zealand are protected by minimum employment standards, regardless of their visa status.”
Ms Ikenasio said premiums represent one of the most egregious forms of 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.
“Such conduct reflects a clear misuse of the inherent power imbalance in employment relationships, allowing employers to exploit both individuals and regulatory systems for their own gain,” she said.
“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.”
Payment required
The case involved a worker, who travelled from India to New Zealand in August 2023 after being offered work by Mr Singh, who told him he could arrange a job and work visa, but that payment was required.
The worker subsequently made a series of payments totalling $44,750, facilitated through various people connected to the director.
He was employed by 7 Solutions Limited between 25 September 2023 and 1 September 2024.
The matter came to the Labour Inspectorate’s attention in August 2024 when the worker lodged a complaint.
The ensuing Inspectorate investigation found evidence, including bank records, WhatsApp communications, and witness testimony, showing the payments were requested in connection with securing employment and a visa.
Mr Greening rejected explanations that the payments were family loans or unrelated transactions. He found that:
- The payments were directly linked to securing employment with 7 Solutions Limited
- The director had requested the payments
- The timing of the payments aligned with the worker’s visa application and job offer
- The total amount closely matched sums discussed in messages between the parties.
Although some payments were made to third parties, Mr Greening found the company had effectively received the money through “constructive possession” due to the director’s knowledge and control.
He said the company breached the law by both seeking and receiving unlawful premiums.