THAMES, 27 July 2026
A Thames supermarket company and its owner have been ordered to pay $44,000 in penalties after two migrant workers were required to pay a combined $120,000 to secure employment in New Zealand.
The Employment Relations Authority found that A Dharni Enterprises Ltd, trading as Four Square Martina, received unlawful job premiums from the workers before they entered New Zealand on Accredited Employer Work Visas.
ERA Member Helen van Druten ordered the company to pay a $32,000 penalty. The company’s sole director, Jaswinder Singh, was ordered to pay a separate penalty of $12,000.
Each worker will receive $1,000 from the penalty imposed on the company.
The company and Singh were also ordered to jointly pay more than $7,000 in costs to the Labour Inspectorate.
The $120,000 paid by the workers had already been repaid before the ERA hearing, but the Authority still imposed penalties because the original payment arrangement breached New Zealand employment law.
Workers each paid $60,000 for employment
The two workers each paid $60,000 to secure jobs at the Thames Four Square.
According to the ERA decision, the money was paid in India through seven instalments. The workers had family connections to Singh and arrived in New Zealand in July and August 2023.
Both entered the country on Accredited Employer Work Visas, which linked their right to work in New Zealand to their employer.
The workers only remained with the business for a short time.
Singh reportedly believed they had misrepresented their English-language ability during the recruitment process, and they later left the business.
However, concerns about their work performance did not remove the company’s obligation to comply with employment law or justify requiring payment in return for employment.
The workers complained about the premiums in September 2023, triggering an investigation.
Premiums effectively funded the workers’ wages
Van Druten found that the company gained financially from the arrangement because the payments were effectively used to cover the workers’ own wages.
“Effectively, A Dharni Enterprises Ltd used the premiums to pay the employees’ own wages,” she said.
The arrangement freed up company funds that would otherwise have been needed to pay wages and provided the employer with a financial advantage.
New Zealand law prohibits employers from seeking or receiving money in exchange for employment.
These payments are commonly known as employment premiums. They may involve workers being charged directly for a job, being required to repay part of their wages, or paying intermediaries connected to the recruitment process.
Seeking or receiving a premium for employment is illegal under the Wages Protection Act.
Migrant workers considered particularly vulnerable
The ERA found the workers were in a vulnerable position because they were new to New Zealand and their visas were tied to their employer.
For many migrant workers, losing a job can also place their immigration status, accommodation and ability to support family members at risk.
This can create a significant imbalance of power between employers and workers.
Natalie Gardiner, the Labour Inspectorate’s Migrant Exploitation Manager, said employers seeking money in exchange for jobs had no place in New Zealand.
“There is absolutely no place in New Zealand for employers seeking payment in exchange for jobs,” Gardiner said.
“Migrant workers have the same employment rights and protections as all other workers, regardless of where they come from.”
She said the two workers and their families had faced substantial financial pressure after paying $120,000 for the promise of work and the opportunity to establish a life in New Zealand.
Gardiner said such practices also damaged the credibility of New Zealand’s immigration and employment systems.
Although the workers eventually received their money back, she noted that repayment only occurred after the Labour Inspectorate became involved.
Complex investigation involved witnesses in India
The investigation required coordination between several parts of the Ministry of Business, Innovation and Employment.
The matter was first examined by Immigration Compliance and Investigations before being referred to the Labour Inspectorate.
Inspectors had to contact witnesses in India, establish how the payments had been arranged and identify the role of intermediaries involved in transferring the money.
They also had to prove that the payments were directly connected to the workers’ employment.
The investigation included a review of employment agreements, immigration records and Immigration New Zealand documentation.
MBIE said the outcome demonstrated the value of its integrated compliance approach, where specialist teams share information and work together when potential employment and immigration breaches overlap.
Foodstuffs and supermarket sector engagement
Four Square stores operate under the wider Foodstuffs network, although individual stores are generally locally owned and operated.
Katriona Ikenasio, Labour Inspectorate Investigations Manager for the Northern region, said the Inspectorate had a long history of working with Foodstuffs NZ and the broader supermarket sector to improve understanding of employment obligations.
She said industry engagement could help employers strengthen compliance systems, but did not replace individual accountability.
“Sector engagement does not replace accountability; it helps build awareness of obligations while ensuring employers remain responsible for meeting them,” Ikenasio said.
She added that enforcement cases should prompt employers and industry bodies to review their recruitment, payroll and workplace practices.
The decision sends a warning to employers that franchise branding, industry engagement or repayment after an investigation will not remove responsibility for unlawful conduct.
What migrant workers should know
Migrant workers in New Zealand have the same minimum employment rights as all other workers.
An employer cannot legally charge a worker for providing a job.
Workers should also receive a written employment agreement, be paid at least the applicable minimum wage, receive holiday entitlements and be provided with accurate wage and time records.
Anyone who believes they have been asked to pay for employment can contact Employment New Zealand or report concerns confidentially to the Labour Inspectorate.
The Thames case also highlights the importance of reporting suspected exploitation early. Financial records, messages, bank transfers, recruitment documents and communications with intermediaries can become important evidence during an investigation.
A warning for employers
The penalties in this case were imposed even though the full $120,000 had been repaid.
That distinction matters.
Repaying money after authorities become involved does not erase the original breach or guarantee that penalties will be avoided.
Employers remain responsible for ensuring that recruitment arrangements comply with New Zealand law, including when overseas intermediaries, relatives or other third parties are involved.
For migrant workers, the decision reinforces a simple but important principle: a New Zealand job is not something an employer can legally sell.
References
- Ministry of Business, Innovation and Employment media release, 27 July 2026.
- Employment Relations Authority decision involving A Dharni Enterprises Ltd and Jaswinder Singh.
- Wages Protection Act 1983.
- Employment New Zealand guidance on migrant worker rights and employment premiums.
