New Zealand court confirms employers cannot charge migrant workers for jobs

New Zealand’s Employment Court has confirmed that employers cannot charge migrant workers fees to secure jobs in the country, even when payments are made overseas.

The ruling also covers payments made through third parties, including family members, friends and recruitment agents acting on an employer’s behalf.

According to the official website of Immigration New Zealand (INZ), the decision clarifies how the Wages Protection Act 1983 applies to overseas recruitment payments, closing a legal gap that had created uncertainty over protections for migrant workers.

The ruling confirms that the prohibition applies regardless of where the payment is made, how much is charged or who makes the payment on behalf of the prospective employee.

It also covers fees received by agents or other intermediaries acting for an employer, strengthening accountability across recruitment arrangements involving overseas workers.

Aaron Smith, national manager of risk and verification at INZ said, "The Court further held that the prohibition extends to payments made on a prospective employee’s behalf by family members, friends, agents or others, and to payments received by agents or others acting on behalf of the employer.”

INZ said migrant workers paying substantial sums for promised jobs and residency was a recurring and widespread form of exploitation.

"It makes it clear no matter where the worker is, how much is paid, and regardless of to who, that it is illegal to charge a fee for a job in New Zealand. If you are being charged for a job, then your employer (and those working on their behalf) is committing an illegal act," Smith noted.

The agency has urged migrants who believe they have been misled or pressured into paying for job offers or visa support to report suspected abuse.

INZ has highlighted the following points for migrant workers and employers:

• Reporting suspected exploitation: Migrants who believe they have been misled or pressured into paying for a job or visa support should contact INZ.

• Recovery of payments: INZ cannot recover money already paid by migrants in job scams.

• Employer accountability: Authorities have options to hold New Zealand employers accountable when they or people acting on their behalf charge workers for jobs.

• Offshore recruitment: Employers and recruitment intermediaries must ensure overseas hiring arrangements comply with New Zealand employment standards.

The ruling places greater responsibility on employers and recruitment intermediaries to ensure their hiring practices comply with New Zealand employment standards, including when recruitment takes place overseas.

INZ has warned employers to monitor third-party recruitment arrangements and ensure migrants are not charged fees to secure employment.

"Employers and those involved in recruiting migrant workers need to make sure their recruitment practices are transparent, uphold New Zealand’s employment standards, and that migrants are not being charged to secure employment.” Smith mentioned.

“This includes being alert to what is happening through offshore recruitment arrangements and third parties," he also added.

The agency warned that employers and intermediaries who exploit migrant workers for financial gain, misuse their positions or make false job offers could face legal consequences.