Landmark ruling bans overseas recruitment fees for Pacific workers

A landmark Employment Court ruling could help Pacific migrant workers challenge fees paid overseas to secure jobs in New Zealand, as MBIE reports hundreds of complaints alleging unlawful recruitment payments but it cannot identify how many involve Pacific workers.

Two Employment Court rulings earlier this month clarified that New Zealand’s ban on employment premiums applies even when payments for jobs here are sought or received overseas.

Dhilum Nightingale, Barrister and migrant exploitation researcher, says the decision closes a loophole in the Wages Protection Act 1983 to also cover payments made overseas.

Speaking to William Terite on Pacific Mornings, she says workers can arrive in New Zealand carrying significant debt, which forces people to keep on working and keep silent about this awful treatment.

“They will usually take out very high-interest loans and borrow from families and friends… I've seen $60,000-plus of debt, so they're on so much of a back foot from the time that they arrive.

“They are told that they will be earning so much in New Zealand that they'll be able to pay that debt off really quickly, and that's never the case.”

Watch Dhilum Nightingale's full interview below.

The Ministry of Business, Innovation and Employment (MBIE) Labour Inspectorate received 198 complaints alleging recruitment premiums in 2025/26, following 270 in 2024/25 and 391 in 2023/24.

In a statement to PMN News, Cory Hagenaars, Labour Inspectorate Manager for Migrant Exploitation, says nationality and ethnicity are not consistently recorded in a way that allows a reliable Pacific-specific breakdown.

Loua Ward, MBIE National Manager Pacific, says the agency has received no complaints or identified cases of Recognised Seasonal Employer (RSE) workers paying unlawful recruitment fees overseas. RSE employers must declare and get approval for costs they want workers to repay.

The Recognised Seasonal Employer (RSE) scheme aims to support economic growth and improve employment conditions in New Zealand and the Pacific. Photo/Supplied

“Workers receive pre-departure briefings on what to expect in New Zealand, including cost recovery, and are supported by Pacific Country Liaison Officers who conduct regular welfare checks.”

More than 1,600 Tongans worked in New Zealand under the RSE scheme during 2025/26, according to1News. Together with Australia’s Pacific Australia Labour Mobility scheme, seasonal work was estimated to involve around one in five working Tongan men.

Rochelle-Lee Bailey, a researcher with the Australian National University’s Department of Pacific Affairs, says workers have signed loans and agreements with people claiming to be agents, who sometimes aren’t even in the same country.

“People trust the people that they know. We have had RSE workers and PALM workers go back to their village and say ‘if you give me so much money, I’ll get you a place’, and that’s not necessarily true.”

MBIE Country Liaison Officers and labour mobility officials from across the Pacific at a specialised wellbeing and resilience workshop in Wellington. Photo/Immigration NZ

Ward says anyone who believes they have been misled or pressured into paying for a job offer or visa support should contact MBIE.

“MBIE does not have international jurisdiction to recover payments made overseas by a migrant in a job scam. That action would have to be taken by authorities or the worker in that country.

“A person who has paid an unlawful premium may be able to seek recovery from the employer through the Employment Relations Authority (ERA). In some circumstances, a Labour Inspector may file proceedings that result in the employer having to repay the premium.”

Concerns can be reported to MBIE through the migrant exploitation reporting line on 0800 200 088 or the online reporting form, and interpreter support is available.

While the ruling is being celebrated as a win, the scale of its impact on Pacific workers remains unknown.

RSE arrivals and annual cap, 1 July 2007—30 June 2024. * Arrivals impacted by Covid-related travel restrictions. Total RSE arrivals include those from Asian source countries (India, Indonesia, Malaysia, Philippines, Taiwan, Vietnam). Image/MBIE arrivals data