An Auckland lawn mowing company and its sole director have been ordered to pay back nearly $45,000 it forced an Indian migrant worker to pay unlawfully for a job and work visa.
The Employment Relations Authority also ordered 7 Solutions Limited, trading as Auckland City Lawns, to pay a $16,000 fine and its sole director Kamal Jeet Singh to pay a further $8000 to the worker, Gurdeep Singh, for intentionally breaching the Wages Protection Act.
Singh would be personally liable for repaying the worker $44,750 if the company did not have the money.
The authority said the company’s actions amounted to serious exploitation of a migrant worker and breached the Wages Protection Act.
Gurdeep Singh, arrived in New Zealand in August 2023 on an Accredited Employer Work Visa to work for the company. He was employed from September 2023 to September 2024.
According to Gurdeep Singh’s testimony, during a visit to his home in India in February 2023, the director Kamal Jeet Singh assured he could arrange a job and visas for the worker and his wife, but they would have to pay approximately $36,000 to secure the job.
Following this, five separate payments totalling $44,750 were made from Indian bank accounts between May and June 2023 to Kamal Jeet Singh, his wife, and his brother.
In September 2024, Gurdeep Singh lodged a formal complaint and the Labour Inspectorate launched an investigation.
Director, Kamal Jeet Singh however denied having sought or received any premium amount for arranging job.
The Authority found the timing of the payments, arranged by the worker in the two-week period following the salary discussion and coinciding with his visa approval, overwhelmingly pointed to them being premiums.
Labour Inspectorate northern region investigations manager Katriona Ikenasio said premiums to secure employment were one of the most egregious forms of exploitation.
They prey on the vulnerability of migrants, both offshore and onshore, who often rely heavily on the advice and direction of employers and agents to secure employment or visas,” she said.
“In this case the complainant transferred funds through multiple intermediaries at the direction of the company director, demonstrating a deliberate and calculated strategy. Such conduct reflects a clear misuse of the inherent power imbalance in employment relationships, allowing employers to exploit both individuals and regulatory systems for their own gain.”
Authority member Simon Greening rejected explanations the payments were family loans or unrelated transactions.
ERA collected evidence including bank records, WhatsApp communications and witness testimony that showed the payments were requested in connection with securing employment and a visa.
The Authority found the timing of the payments, arranged by the worker in the two-week period following the salary discussion and coinciding with his visa approval, overwhelmingly pointed to them being premiums.
“A person who came here seeking a new life was charged a significant sum for a work opportunity that should have been free,” Ikenasio said.
In another recent case, a Bay of Plenty Kiwifruit business owner, Tarun Gautam charged an employee Jagmeet Singh, over $23,300 to get a job at his business.
According to a recently released Employment Relations Authority decision, Gautam and Hariom Horticulture Ltd have been fined more than $40,000 for failing to comply with minimum employment standards, including breaching the Employment Relations Act, the Holidays Act, the Minimum Wage Act, and the Wages Protection Act.
