New Zealand court rules employers charging migrant workers overseas job fees is illegal

New Zealand’s Employment Court has clarified that charging migrant workers fees to secure jobs in the country is illegal, even when the payments are made overseas.

The decision removes uncertainty over whether New Zealand’s employment laws apply to payments made outside the country for jobs in New Zealand. It also confirms that the prohibition covers payments made through family members, friends, agents or other third parties.

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Aaron Smith, National Manager Risk and Verification at Immigration New Zealand (INZ), said the ruling sets a precedent that will help authorities tackle migrant exploitation. “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,” Smith said.

Overseas recruitment payments

The Wages Protection Act 1983 prohibits workers from being charged a fee for a job. However, there had previously been uncertainty over whether the law applied when the payment was made overseas. The court has now confirmed that such payments are prohibited, regardless of where the worker is located or who receives the money.

Smith said migrant workers paying large sums for promises of employment and residency was a recurring and widespread feature of migrant exploitation. “The Court’s decision provides a legal tool to help combat this exploitation,” he said. “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. If you are being charged for a job, then your employer (and those working on their behalf) is committing an illegal act.”

The clarification is relevant to migrants recruited from overseas who may be asked to pay employers, recruitment agents or intermediaries to secure employment in New Zealand.

What migrant workers can do

INZ has urged people who believe they have been misled or pressured into paying for job offers or visa support to contact the agency. “Anyone who believes they have been misled or pressured into paying for job offers or visa support should contact us. Every piece of information helps us prevent others from being exploited,” Smith said.

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However, the agency has warned that it cannot recover money paid by migrants who have been caught in job scams. “While we cannot recover premiums paid by a migrant in a job scam, we do have a range of options available to hold New Zealand employers to account if they (or those working on their behalf) are found to be charging migrants for jobs,” he said.

INZ has also called on employers and those involved in recruiting migrant workers to ensure their recruitment practices are transparent and comply with New Zealand’s employment standards. This includes monitoring offshore recruitment arrangements and the activities of third parties.

Smith warned that employers and others who break the law, misuse their position or exploit migrants for financial gain, including through false job offers, would face consequences. The ruling is intended to strengthen action against employers and intermediaries who charge migrants to secure employment in New Zealand.