The Employment Relations Authority (ERA) recently dealt with a case involving a foreign worker who paid a substantial sum to secure employment in New Zealand, only to be dismissed after less than a week on the job. 

The worker alleged he was charged an unlawful premium for employment, left without work for several weeks after arriving in the country, and then unfairly dismissed. He sought compensation for his losses including unpaid wages and holiday pay. 

The employer denied seeking or receiving any premium and claimed they provided work as soon as it became available. They also argued they did not dismiss the worker, contending instead that he was inadequate and abandoned his job after failing to show up for a painting trial...

The worker sought lost wages for 41 weeks following his dismissal, less the casual income he managed to earn. The ERA noted his difficulties in finding alternative employment due to limited English skills and visa restrictions. 

After obtaining a migrant exploitation visa in October 2023, the worker found some casual work one or two days a week. The ERA awarded him three months' wages under section 128 of the Employment Relations Act, totalling $13,035.20 gross after deductions for casual earnings. 

The worker also sought $20,000 compensation for humiliation, loss of dignity, and injury to feelings. The ERA awarded $17,000, noting the significant personal impact of the dismissal. 

"[The worker] was significantly affected by his dismissal – sadness with no job or income, having to borrow money from family and friends to survive. He felt helpless and guilty, unable to earn in a foreign country to provide for his family back home. Despair lead to physical and mental exhaustion. Impacted his financial stability and mental health," the ERA stated. 

The employer was also ordered to pay $123.25 gross in outstanding holiday pay based on the 55.5 hours the worker had actually worked, calculated at his hourly rate of $27.76 with 8% holiday pay. 

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