- A supermarket company and its director must pay forty-four thousand dollars in penalties for worker exploitation.
- Two migrant workers each paid sixty thousand dollars in India to secure jobs and visas.
- The store was removed from the franchise after the Employment Relations Authority found the claims to be pretexts.
A Thames Four Square supermarket company and its director must pay $44,000 in penalties after two migrant workers paid $120,000 to secure jobs in New Zealand, the Employment Relations Authority said Monday.
A Dharni Enterprises Ltd, which traded as Four Square Martina, must pay $32,000. Its sole director, Jaswinder Singh, must pay another $12,000.
The workers each paid $60,000 in India through seven instalments. They entered New Zealand on Accredited Employer Work Visas in July and August 2023.
The company repaid the full $120,000 before the hearing, but only after the Labour Inspectorate intervened. The company and Singh must also jointly pay more than $7,000 in costs to the inspectorate.
Each worker will receive $1,000 from the company’s penalty payment. The authority’s decision followed complaints made in September 2023, shortly after the workers arrived.
The workers’ visas tied them to the employer
The workers had family ties to Singh and were new to New Zealand when they started the jobs. Their visas tied them to the employer, leaving them particularly vulnerable after the employment ended.
Singh terminated their employment shortly after their arrival. He said they had misrepresented their English ability during recruitment.
Helen van Druten, a member of the authority, found that explanation was a pretext. The decision said the workers had borrowed money in India to pay the unlawful premiums, placing financial pressure on them and their families.
Van Druten also found that the payments gave the company a financial advantage. The premiums effectively covered the workers’ own wages, freeing company money that otherwise would have paid them.
“Effectively, A Dharni Enterprises Ltd used the premiums to pay the employees' own wages. [this] provided A Dharni Enterprises Ltd with a financial advantage, freeing up company money that would otherwise be used to pay those wages.”
The finding treated the arrangement as more than a private dispute over recruitment. It connected the payments to the workers’ wages, their immigration status and the employer’s conduct after they arrived.
Inspectorate says jobs cannot be sold
Natalie Gardiner, the Labour Inspectorate’s Migrant Exploitation Manager, said the workers paid for both employment and the possibility of establishing lives in New Zealand.
“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.”
Katriona Ikenasio, the inspectorate’s Northern Investigations Manager, said migrant workers retain the same workplace protections as other employees.
“There is absolutely no place in New Zealand for employers seeking payment in exchange for jobs. Migrant workers have the same employment rights and protections as all other workers, regardless of where they come from.”
The investigation began after the workers filed a formal complaint in September 2023. Immigration Compliance and Investigations worked with the Labour Inspectorate as part of an integrated compliance approach by the Ministry of Business, Innovation and Employment.
That coordination brought the immigration and employment issues into the same enforcement effort. The workers’ visa conditions also formed part of the authority’s assessment of their vulnerability.
Four Square store loses its franchise banner
Foodstuffs North Island, the Four Square franchisor, confirmed that Four Square Martina had been “debannered.” The store no longer operates under the Four Square name or the Foodstuffs brand.
A spokesperson said the business was no longer part of the Foodstuffs North Island co-operative. The change separates the store from the wider retail network while the penalties target the company and its director.
The financial consequences extend beyond the $44,000 penalties. The joint costs order requires the company and Singh to reimburse the Labour Inspectorate for more than $7,000, while the workers receive $1,000 each from the company’s penalty.
The $120,000 repayment addressed the money taken from the workers, but it did not erase the period during which they and their families carried the debt. The authority’s findings focused on the employer’s financial gain and the workers’ dependence on jobs connected to their visas.
The decision identifies A Dharni Enterprises Ltd as the company responsible for the business and Singh as its sole director. Singh was also the owner and operator of the store when the breaches occurred.
The case illustrates the enforcement risk attached to demanding money in exchange for a job connected to a New Zealand work visa. Employers who face allegations involving visa-linked employment, recruitment payments or migrant exploitation should obtain advice from a qualified lawyer about the specific facts and applicable New Zealand rules.
This article provides general information and is not legal advice. Consult a qualified immigration attorney about your specific case.
