An employer in New Zealand has been ordered to pay nearly $50,000 for unjustified dismissal of a migrant worker. Learn your rights and how Core Legal can help.

Employer to Pay $50,000 After Exploiting Migrant Worker – Core Legal Masterton & Wellington

A recent decision from the Employment Relations Authority (ERA) has reinforced the importance of employer compliance with New Zealand’s employment laws—especially concerning migrant workers. An employer has been ordered to pay almost $50,000 in penalties and compensation after a migrant employee was unjustifiably dismissed and unjustifiably disadvantaged.

This ruling highlights the serious legal risks for employers who fail to follow fair processes and reinforces the rights of all workers under New Zealand employment law.

What Happened?

The employee, recruited from China through the employer’s agent, helped the business become accredited under the Accredited Employer Work Visa (AEWV) scheme. He signed an individual employment agreement promising 40 hours of work per week. Upon arriving in New Zealand, however, the employee was given no work and received no pay.

The employer soon told the worker there was no job available and advised him to find work elsewhere. As a result, the employee filed a personal grievance with the ERA, citing unjustified dismissal and unjustified disadvantage.

Key Legal Findings

1. Employee Status Confirmed
   The ERA found that the employee had accepted a valid employment agreement and was therefore a lawful employee, even though no work was performed.

2. Unjustified Disadvantage
   By failing to provide work or compensation—and without any formal change to the agreement—the employer caused significant financial and emotional hardship to the worker.

3. Unjustified Dismissal
   The ERA ruled that telling the employee to find other work amounted to a dismissal without due process, making it both procedurally and substantively unfair.

The Outcome

The ERA ordered the employer to pay:

• $13,800 – Three months’ lost wages

• $20,000 – Compensation for emotional harm

• $10,000 – Penalty for breaching employment law

• $4,270 – Contractual notice entitlement

What Employers and Employees Should Know

This case sets a strong precedent: employers must follow legal obligations and fair processes—especially for migrant workers, who may be more vulnerable to exploitation.

If you are an employee who feels you’ve been unfairly treated, or an employer unsure of your obligations, seek professional advice early.

At Core Legal, we help clients across Wellington, Masterton and the Wairarapa region navigate employment disputes, grievances, and compliance. We offer fixed-fee initial consultations to help you quickly understand your legal options and next steps.

???? Contact Core Legal today to protect your rights and receive expert employment law advice.