New Zealand court rules against illegal recruitment fees for migrant workers

The Employment Court of New Zealand ruled that migrant workers can challenge fees paid overseas to secure jobs in the country.

This decision follows a case involving Top Produce Ltd, a defunct kiwifruit-growing firm in the Bay of Plenty, which the Ministry of Business, Innovation & Employment (MBIE) accused of soliciting payments from workers in exchange for employment. The court found that requiring such payments breaches Section 12A of the Wages Protection Act 1983.

This ruling overturns a 2003 decision that allowed a loophole for recruiters to demand fees as long as the transactions occurred outside of New Zealand. Employment lawyer Lisa Meto Fox stated that recruiters exploited this gap to collect up to $60,000 per worker per job. The court noted that these informal payments, often made via phone or text to offshore accounts, were designed to evade domestic regulations and trap workers in debt before they even started their jobs.

While the ruling provides a new legal precedent, some advocates argue the law still needs further expansion. Fox suggested that workers under the Recognised Seasonal Employer (RSE) Scheme should not have to pay for flights, visas, or insurance, as these costs currently consume a large portion of their earnings. Data released under the Official Information Act showed a decline in complaints to the Labour Inspectorate regarding premiums, falling from 391 in 2023/24 to 198 in 2025/26.