A Four Square in Thames and its owner have been fined a total of $44,000 after two migrant workers handed over $60,000 each to secure their jobs in New Zealand.
The two workers, who each paid $60,000, had family ties to the sole business owner Jaswinder Singh, and entered New Zealand on Accredited Employer Work Visas in July and August 2023. The money was paid in India in seven instalments.
Employment Relations Authority (ERA) member Helen van Druten ordered the company, A Dharni Enterprises Ltd, trading as Four Square Martina, to pay a penalty of $32,000 and Singh a penalty of $12,000.
"Effectively, A Dharni Enterprises Ltd used the premiums to pay the employees' own wages," van Druten said.
She found the arrangement provided A Dharni Enterprises Ltd with a financial advantage, freeing up company money that would otherwise be used to pay those wages.
Van Druten said the workers were particularly vulnerable because their visas were tied to their employer, and they were new to the country.
They only worked for the business briefly before leaving because Singh felt they had misrepresented their English ability during the recruitment process.
The case followed a Labour Inspectorate investigation that began after the workers complained about the premiums in September 2023.
The matter was initially investigated by Immigration Compliance and Investigations before being referred to the Labour Inspectorate for further action.
The Inspectorate's Migrant Exploitation Manager Natalie Gardiner said demanding money from migrant workers in return for employment was "a serious breach of employment standards".
"There is absolutely no place in New Zealand for employers seeking payment in exchange for jobs. Migrant workers have the same employment rights and protections as all other workers, regardless of where they come from.
Katriona Ikenasio, Labour Inspectorate Investigations Manager (Northern), said the Labour Inspectorate had a longstanding history of engaging with Four Square franchisor Foodstuffs NZ, and the wider supermarket sector to promote understanding of employment standards and support sustainable compliance.
The money paid for the premiums was repaid to the workers by the company prior to the ERA hearing.
The workers will each receive $1000 of the penalty paid by the company.
In addition to the penalties, the company and Singh were ordered to jointly pay more than $7000 in costs to the Labour Inspectorate.
Foodstuffs North Island has been contacted for comment.
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