The Employment Relations Authority has rejected a claim for unjustified disadvantage because the alleged employee was not actually an employee.

The “employee” claimed that he was an employee and that they did not pay him or provide employment to him despite a signed employment agreement.

The ERA determined that the employment agreement was an immigration scam.  The “employee” paid the employer to allow him to pay it money, which it then paid back to him and paid tax to the IRD.  There was no actual employment and the “employee” never carried out any work for the “employer”.

The “employer” was therefore successful in defending the claim by the “employee” and was not liable for any damages or compensation to the “employee”.  However the Employment Relations Authority referred a copy of its decision to the Deputy Chief Executive of Immigration New Zealand and the likely outcome of that will be a prosecution being brought against the “employee” and “employer”.

Alan Knowsley

Employment Lawyer