Deductions from wages 55. Many workers informed us of their concerns about regular deductions from their pay. Often workers’ payslips were not clear on what the deductions were for and many workers could not obtain the reasons for the deductions when they questioned their employer. They told us that this left them feeling exploited. When the reason for the deductions were provided on payslips, they ranged from things such as costs for accommodation, food, transport to and from work, health insurance, income tax, and recovering the debts in the recruitment process. 56. Every worker that we spoke to said that the total weekly deductions were too high, leaving them with little to spend on themselves. Some of the payslips that the Commission observed had some workers being left with $35 net pay at the end of a fortnight, after some of the following deductions: • • 14 Tools of trade: Many workers that we spoke to routinely had deductions made from their pay for the tools of trade, such as gloves, boots, and pruning and trimming equipment. Workers expressed concerned that they were being charged for equipment necessary to perform the job when they were employees and not contractors. Transport: All of the workers that we spoke to were charged between $20$45 per week for transport between the accommodation and work site. Usually workers were transported in 12-seater vans that were owned by the employer. We heard about one instance where a group of workers purchased their own vehicle and were told by the employer that they were not allowed to use it to get to and from work and must use the company’s van. We were told that the workers were forced to sell the vehicle under threat that it would be burned by the employer. • Food: The Commission visited one site where workers were required to purchase five meals from the employer at $10 per dinner. The workers told us that they wished to make dinner for themselves and had raised this with their employer. However, they were not able to negotiate and had to purchase the meals. • Undefined debts: Many of the workers’ payslips that were viewed by the Commission showed deductions labelled as “debt”, “loan”, or “arrears”, without any other explanation. At one accommodation unit, we heard from workers who had $250 deducted from their pay every time the smoke alarm in the kitchen went off. 57. As noted below, accommodation and health insurance were also deducted from pay. The Commission found that after deductions were made many workers were left with less than the minimum wage. 58. The Wages Protection Act 1983 requires that any deductions from wages can only be made with the written consent of the worker.46 An employer cannot make unreasonable deductions under the Act.47 59. The Immigration NZ operational manual requires that pay deductions must meet the Wages Protection Act; the consent of the worker is required, and that they must be for actual, reasonable and verifiable purposes.48 60. ILO Recommendation No. 100 provides that “employers should be required to restrict any advances to workers to a small proportion of their monthly remuneration.”49 46 Section 5(1). 47 Section 5A. 48 WH 1.20.10 Pay deductions https://www.immigration.govt.nz/opsmanual/#34417.htm. 49 ILO Recommendation No. 100 Protection of Migrant Workers (Underdeveloped Countries) Recommendation, 1955 at para 33. Recognised Seasonal Employers (RSE) Scheme: Human rights issues for seasonal workers in Aotearoa New Zealand