A New Zealand construction company and its director are now under an order from the Employment Relations Authority (ERA) to pay over $33,000 in arrears. The order came after the company failed to live up to the certified agreements it had made with five migrant workers.
Between late 2022 and early 2024, five migrant workers on Accredited Employer Work Visas endured repeated wage delays, unpaid holiday entitlements, and other breaches during their employment. After leaving the company, they brought claims to the ERA, where the issues were officially settled through a mediation process in June 2024.
As part of the mediated settlements, the company agreed to pay compensation to each worker in ten monthly instalments. The agreements also included a safeguard that if payments were delayed beyond five working days, the full balance would become payable at once. Although the first few instalments were made, the payments quickly stalled, leaving $33,300 still owed across the five workers.
The workers told the authority just how much the missed payments had affected their lives. One of them was facing eviction notices, another struggled to cover visa fees and school expenses, and others talked about the toll the stress took, leaving them with anxiety and sleepless nights as they worried about providing for their families abroad.
While the company director admitted to the breach, he said that financial hardship, like mounting tax bills and other debts, was the reason for the missed payments. But the ERA was clear: financial difficulties do not excuse an employer from their legal obligations under a certified settlement.
Alongside ordering payment of the arrears, the ERA imposed a $2,500 penalty on the company and its director, with $500 directed to each of the five workers. The ruling underscored that certified settlements must be honoured and signalled that migrant workers in New Zealand are entitled to fair treatment and enforceable remedies when agreements are breached.