New Zealand’s Employment Court has clarified that employers cannot charge workers for jobs in the country, even when they pay overseas, in a ruling aimed at strengthening protections against migrant exploitation.
Immigration New Zealand (INZ) National Manager Risk and Verification Aaron Smith said the decision removed uncertainty about whether New Zealand employment law applied to payments made outside the country for jobs within its borders.
The ruling concerns the Wages Protection Act 1983, which prohibits employers and people acting on their behalf from seeking or receiving a premium in exchange for employment.
The Court clarified that the location of a transaction does not determine whether the prohibition applies. The ban can also cover payments made by family members, friends or others on behalf of prospective employees, as well as money collected by intermediaries acting for employers.
“The Court’s decision provides a legal tool to help combat this exploitation,” Smith said.
He said migrants paying significant sums in exchange for promises of jobs and residency in New Zealand remained a recurring and widespread form of exploitation.
“It makes it clear no matter where the worker is, how much is paid, and regardless of who, that it is illegal to charge a fee for a job in New Zealand,” Smith said.
“If you are being charged for a job, then your employer (and those working on their behalf) is committing an illegal act.”
Smith encouraged anyone who believed they had been misled or pressured into paying for job offers or visa support to contact Immigration New Zealand.
“Every piece of information helps us prevent others from being exploited,” he said.
While INZ cannot recover premiums paid by migrants in job scams, it has several options for holding New Zealand employers accountable if they, or people acting on their behalf, are found to have charged workers for employment.
Smith also urged employers and those involved in migrant recruitment to ensure their practices were transparent, complied with New Zealand employment standards and did not require migrants to pay to secure jobs.
This includes monitoring offshore recruitment arrangements and the activities of third parties involved in hiring migrant workers.
“If you break the law, misuse your position, or take advantage of migrants for financial gain, including through making false job offers, there will be consequences,” he said.
The Employment Court’s decision arose from two proceedings involving a Labour Inspector and claims concerning migrant workers. The Court considered whether the legal prohibition on charging employment premiums applied to transactions conducted overseas for jobs in New Zealand.
The clarification reinforces that employers cannot avoid the law simply by arranging for payments to be made outside New Zealand.
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