Huy Quang Tran, sole director of the liquidated labour hire firm High-End Renov Group Limited, has been ordered by the Employment Relations Authority to pay $203,469.89 for worker standard breaches affecting three Vietnamese migrant workers.
Penalties and Arrears Ordered by the Employment Relations Authority
Tran was ordered to pay $132,291.14 in wage arrears, holiday pay, and unlawfully received employment premiums owed to three former employees. Authority Member Robert Davies also ordered Tran to pay $71,178.75 in penalties for his direct involvement in the statutory breaches.
Each of the three affected workers will receive $6,000 from the penalty amount. The remaining $53,178.75 of the penalty must be paid directly to the Crown.
Did You Know? High-End Renov Group Limited operated as a supplier of painters and plasterers to construction sites across Auckland and Christchurch before entering liquidation in March 2025 and subsequently being removed from the Companies Register.
Unlawful Offshore Premiums and the Accredited Employer Work Visa Scheme
A central dispute in the proceedings involved two migrant workers who each paid $30,000 to obtain employment with the company through the Accredited Employer Work Visa scheme. These payments were made in Vietnam before the workers arrived in New Zealand.
The Authority rejected Tran’s explanation that the offshore transactions represented personal loan repayments. Instead, investigators concluded the funds were collected to secure employment, marking a combined total of $60,000 in unlawful employment premiums that must now be repaid.
Legal Precedent and Personal Accountability for Directors
The case highlights evolving legal rules regarding offshore recruitment fees. While the Wages Protection Act 1983 has long prohibited charging workers fees for jobs, it was previously unclear whether New Zealand employment law applied to transactions completed overseas.
An October Employment Court ruling established that overseas payments made to secure local jobs are illegal, allowing the Employment Relations Authority to enforce repayment in this case. Acting Head of the Labour Inspectorate Jeanie Borsboom noted that the decision sends a definitive message that company directors can be held personally accountable for systemic record-keeping failures, minimum wage underpayments, and recruitment exploitation.
Tran Ordered to Pay Penalties for Wage Breaches
What specific breaches did the Employment Relations Authority find?
The Authority found failures including minimum wage underpayments, missed holiday entitlements, inadequate record keeping, and the collection of unlawful employment premiums from migrant workers.
How much money must Huy Quang Tran pay in total?
Tran was ordered to pay a total of $203,469.89, excluding interest and costs, which covers both employee arrears and official penalties.
What happened to High-End Renov Group Limited?
The company entered liquidation in March 2025 and has since been removed from the Companies Register.
How might this personal liability ruling change recruitment practices for construction firms relying on migrant labor?
Worth a look