A Four Square store in Thames and its owner, Jaswinder Singh, have been ordered to pay $44,000 in penalties after a Labour Inspectorate investigation revealed two migrant workers were charged $60,000 each to secure employment. The workers, who held family ties to Singh, entered New Zealand on Accredited Employer Work Visas in 2023, with payments made in seven installments.
Employment Law Breaches and Financial Penalties
The Employment Relations Authority (ERA) found that A Dharni Enterprises Ltd, the company operating the store, gained a significant financial advantage by using the illegal premiums to cover the employees’ own wages. According to van Druten, the ruling authority on the case, this practice effectively shifted the cost of labor onto the migrant workers themselves.
The workers, who were new to the country and held visas tied specifically to their employer, were deemed particularly vulnerable. They remained with the business only briefly before their employment ended, as Singh alleged they had misrepresented their English language proficiency during the recruitment process. Following the Labour Inspectorate’s intervention, the company was ordered to repay the full $120,000 in premiums. Additionally, the company and Singh must jointly pay $7,000 in legal costs, with the workers receiving $1,000 each from the total penalty pool.
Did you know?
Demanding payment in exchange for a job is a direct violation of New Zealand employment standards. The Labour Inspectorate emphasizes that migrant workers are entitled to the same legal protections as any other employee, regardless of their country of origin.
Corporate Accountability and Franchisor Oversight
The case has triggered a firm response from Foodstuffs North Island, the franchisor for the Four Square brand. A spokesperson confirmed that the Thames store is no longer part of the co-operative and has been “debannered,” meaning it no longer operates under the Four Square name.
Foodstuffs North Island stated that it maintains a strict Code of Conduct for owner-operators. The company noted that it provides extensive oversight to ensure sustainable compliance, and described the incident as a “source of real disappointment” for the broader community of store owners. Following its own internal investigation, the co-operative reiterated that it holds its members to high standards regarding both employment and general law.
Regulatory Landscape for Migrant Workers
This investigation began in September 2023 after the workers filed a complaint regarding the premiums. The matter was initially handled by Immigration Compliance and Investigations before being referred to the Labour Inspectorate for formal enforcement. Katriona Ikenasio, Labour Inspectorate Investigations Manager (Northern), noted that the agency maintains a long-standing relationship with the supermarket sector to promote fair employment practices.
Frequently Asked Questions
What is an illegal employment premium?
Are migrant workers in New Zealand protected by local labor laws?
Yes. Migrant workers are entitled to the same rights, minimum wage protections, and leave entitlements as any other employee in New Zealand, regardless of their visa status.
What happens if a franchise violates employment standards?
Violations can lead to internal investigations, disciplinary action, and, in severe cases, the termination of the franchise agreement and the removal of brand signage.
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