An Auckland-based lawn maintenance business, 7 Solutions Limited, has been ordered by the Employment Relations Authority (ERA) to repay $44,750 to a migrant worker after it was found the company illegally charged the individual for a job opportunity.
The ruling follows a formal investigation by the Labour Inspectorate, which uncovered what officials have described as a “serious exploitation of a migrant worker.” The worker, who arrived in New Zealand from India in August 2023, was told by the company’s sole director, Kamal Jeet Singh, that a job and a work visa could be arranged in exchange for payment.
A Calculated Scheme
Employment Relations Authority member Simon Greening determined that the company breached the Wages Protection Act 1983, which strictly prohibits employers from charging premiums to secure employment. The investigation revealed that the worker made payments totaling $44,750, which were funnelled through various intermediaries connected to the director.
Evidence presented to the ERA included bank records, WhatsApp communications, and witness testimony. While the defense attempted to characterize the transfers as family loans or unrelated transactions, Greening rejected these claims. He concluded that the payments were directly linked to the job offer and that the company held “constructive possession” of the funds due to the director’s direct control and knowledge of the scheme.
Context and Consequences
The ruling highlights the severe power imbalance that can exist in employment relationships, particularly for migrants who rely on employers to navigate visa and work requirements. Katriona Ikenasio, Labour Inspectorate investigations manager for the northern region, noted that this case represents a “deliberate and calculated strategy” to exploit individuals for financial gain.
The financial impact on the business is significant: beyond the $44,750 repayment, 7 Solutions Limited has been penalized $16,000, and Kamal Jeet Singh has been ordered to pay an additional $8,000 personally to the worker. The ruling establishes that if the company fails to repay the $44,750 premium, Singh will be held personally liable for the full amount.
Looking Ahead
This decision serves as a clear warning to employers regarding the legal standards governing migrant labor. Given the Labour Inspectorate’s stated position, it is likely that the agency will continue to prioritize the enforcement of minimum employment standards, regardless of a worker’s visa status. Future cases of this nature may see the Inspectorate utilizing the full extent of its enforcement powers to act as a deterrent against similar exploitation.
As this case concludes, the focus may now shift toward ensuring the victim receives the ordered payments. Should the business or its director fail to comply with these financial obligations, further legal steps to enforce the ERA’s order may be required to ensure the worker is made whole.
