Recruiting overseas? Offshore premiums paid to secure employment do not avoid New Zealand law.
In an important decision for employers recruiting migrant workers, the full Employment Court in Labour Inspector v Top Produce Limited has confirmed that premiums paid overseas to secure employment in New Zealand are unlawful under s 12A of the Wages Protection Act 1983. The ruling resolves conflicting authorities on whether the location of the payment placed it beyond the Act’s reach.
Key takeaways for employers:
- The location of the transaction is irrelevant where the premium relates to New Zealand employment.
- Employers cannot avoid liability by arranging payment through an offshore agent, relative or intermediary.
- Offshore recruitment practices should be reviewed to ensure candidates are not paying for job offers or employment.
If this may raise issues for your business, please contact a member of our employment or immigration team for assistance.
If you would like advice, contact a member of our employment team.
Special thanks to Partner Alastair Espie and Associate Lucinda Smith for preparing this article.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
