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What Does My Business Need to Know About Migrant Exploitation?

When you run a business, you will usually employ staff. This may include employing migrant workers, so people from overseas. When you hire staff, there are many laws you must comply with. You must also comply with these laws when you hire migrant workers. The law protects migrant workers from exploitation in the workplace. As an employer, you must ensure that you do not exploit migrant workers. This article will explain what your business needs to know about migrant exploitation.

What is Migrant Exploitation? 

Migrant exploitation is where behaviour causes material harm to migrants or makes this likely to occur. Material harm may be towards migrants’:

  • social;
  • economic;
  • physical; or
  • emotional well-being.

Migrant exploitation by businesses can include where you fail to meet lawful minimum employment standards. This also can occur when you do not comply with health and safety laws and immigration laws. However, migrant exploitation is not where you make minor, insignificant breaches. Likewise, migrant exploitation does not occur where breaches do not continuously occur. Further, such exploitation does not occur where you can quickly remedy breaches.

What Are the Minimum Employment Rights of Migrant Workers?  

Your business needs to be aware of the employment rights migrant workers hold in order to avoid exploiting these workers. Migrant workers have a host of employment rights under New Zealand law, which include: 

  • having a written employment agreement;
  • if a migrant is at least 16 years old, you must pay them the minimum wage;
  • rest breaks, which you must pay them for;
  • sick, bereavement, parental and domestic violence leave;
  • public holidays;
  • if a migrant’s typical work day falls on a public holiday and they work, you must pay them 1.5 times their average pay rate and give them another day off;
  • four weeks paid annual leave;
  • payslips where they request them; and 
  • fair treatment if you dismiss them.
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How Might a Business Illegally Exploit Migrants?

It is helpful for you as a business owner to know how businesses wrongly exploit migrant workers. This will help you to understand how migrant exploitation in the workplace occurs. Once you understand how migrants can be exploited in the workplace, you can ensure you do not exploit these workers in your business. Here are some common types of migrant exploitation:

  • failing to give migrant workers a written employment contract;
  • making migrant workers pay a fee to work;
  • asking migrant workers to pay some or all of their wages back to you;
  • not paying migrant workers for every hour they work;
  • telling migrant workers to lie about the hours they work for you, making these less than they are;
  • not allowing migrant workers a break and making them work too many hours;
  • not giving migrant workers time off from their jobs;
  • failing to pay migrant workers annual leave;
  • failing to pay migrants for public holidays;
  • locking migrants in your business workplace; and
  • making migrants ask you permission for basic needs such as to eat, sleep and use the toilet.

There are also other ways businesses exploit migrant workers, which are less apparent forms of exploitation and do not always occur in the workplace. For example:

  • making migrant workers do jobs outside of the workplace, such as cleaning your home;
  • making sexual gestures at migrant workers when these are unwanted;
  • holding onto migrants’ passports; and 
  • threatening to end migrant workers’ work visas by calling Immigration New Zealand. 

What Are the Consequences if My Business Exploits Migrant Workers? 

If your business exploits migrant workers, there are repercussions. Should your business violate migrant workers employment rights, your business may: 

  • have to pay a fine; and/or 
  • no longer have the right to employ overseas workers. 

Your migrant workers are encouraged to complain to Employment New Zealand if you exploit them. This can lead to action against your business. For example, your business may be the subject of an enforcement action. Further, your business and its personnel may receive training on how to better understand migrant exploitation.  

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Key Takeaways

As an employer, you may hire migrants to work in your business. Migrant exploitation occurs when you behave in a way that causes material harm to migrants. This type of exploitation can also occur if your behaviour creates an opportunity for this exploitation to occur. There are many things your business needs to know about migrant exploitation. One of these is to understand that migrants have minimum employment rights. One of the rights migrant workers hold is the right to have a written employment agreement. It is also helpful to understand ways businesses commonly exploit migrant workers. This understanding empowers you to ensure your business does not exploit workers in a similar fashion. For example, you should not make migrant workers pay a fee to work for you. There are also other ways migrant workers might be exploited. Regrettably, certain employers may make unwanted sexual gestures to migrant workers. If you do exploit migrant workers, you may face enforcement action, including a fine. Your business may also be stripped of its privilege to employ overseas workers.

If you need help understanding what migrant exploitation is and how your business can avoid it, contact our experienced employment lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.   

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Clare Farmer

Clare Farmer

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