A Thames Four Square and its owner have been ordered by the Employment Relations Authority (ERA) to pay $44,000 in penalties after making two migrant workers pay a total of $120,000 in premiums for their jobs.
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 Jaswinder Singh, the sole director, a penalty of $12,000. The workers will each receive $1,000 of the penalty paid by the company. The money paid for the premiums was repaid to the workers by the company prior to the ERA hearing.
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 successful outcome reflects MBIE’s integrated compliance approach, with specialist teams working together to identify potential breaches, share information and expertise, and take coordinated action where needed.
“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 New Zealand.
The two workers, who each paid $60,000 to secure their jobs, had family ties to the business owner Singh and entered New Zealand on Accredited Employer Work Visas (AEWV) in July and August 2023. The money was paid in India in seven instalments.
They only worked for the business briefly before leaving because Singh felt they had misrepresented their English ability during the recruitment process.
The Labour Inspectorate investigation was complex because inspectors needed to contact witnesses in India, where the premium payments were made, establish the role of intermediaries who facilitated the payments, and demonstrate a link between the payments and the workers’ employment. The investigation also involved reviewing employment and Immigration New Zealand documentation.
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.
“Sector engagement does not replace accountability; it helps build awareness of obligations while ensuring employers remain responsible for meeting them.”
The Inspectorate’s Migrant Exploitation Manager Natalie Gardiner said demanding money from migrant workers in return for employment is a serious breach of employment standards.
“In this case, two workers were required to hand over a total of $120,000 for the promise of employment and the prospect of building a life in New Zealand. These unlawful premiums placed significant financial pressure on the workers and their families and undermined the integrity of New Zealand’s immigration and employment systems,” Gardiner said.
She said although the premiums had been repaid, repayment only occurred after the Labour Inspectorate became involved.
In addition to the penalties, the company and Mr Singh were ordered to jointly pay more than $7,000 in costs to the Labour Inspectorate.
