Understanding New Zealand’s No Placement Fee Policy for Migrant Workers
Hiring migrant workers is a big responsibility, and in New Zealand, it comes with clear rules. An important one is the “no placement fee” policy, which prohibits recruitment agencies from charging employees for helping them find a job. Instead, one of your main employer’s responsibilities is to cover all recruitment-related costs.
Why does this matter? Fair and ethical recruitment helps protect workers from possible exploitation. At the same time, it allows employers like you to stay on the right side of New Zealand labour laws and build a trustworthy reputation.
Whether you’re hiring for the first time or already working with overseas talent, understanding this policy is crucial. Let’s break down what it means for you—and how doing the right thing benefits your business, too.
What ‘No Placement Fee’ Means for Migrant Workers
When a recruitment agency for New Zealand-based companies offers a “no placement fee” service, it means migrant workers don’t have to pay for job matching, processing, or placement services.
In a global recruitment landscape where some workers are often charged significant fees, this policy serves as an essential protection for workers. It shields them from financial exploitation or additional general costs just to secure employment.
The policy is also in line with the International Labour Organization (ILO) guidelines, which call for the elimination of fees charged to workers. Adhering to this standard means proving your recruitment practices are both ethical and aligned with international labour rights protections.
Legal and Regulatory Framework in New Zealand
New Zealand’s immigration and labour laws are clear: migrant workers should never pay recruitment fees. The “no placement fee” policy is backed by multiple laws, including the Wages Protection Act 1983, which makes it illegal for employers or recruitment agencies to charge workers any money in exchange for job opportunities.
The Immigration Act 2009 and the Employment Relations Act 2000 also support the policy. They require employers to treat all overseas workers fairly and fully comply with labour laws.
You must also meet strict requirements under the Accredited Employer Work Visa (AEWV) scheme. Accreditation means you’re expected to follow ethical recruitment standards, like covering all recruitment-related costs yourself.
If you or your recruitment partner breaks these rules, you may face various consequences, such as:
• Fines of up to NZD 100,000
• Loss of accreditation, which means you can no longer hire migrant workers
• Stand-down periods lasting up to 12 months, preventing you from sponsoring any new visas
• In severe cases, criminal charges or even imprisonment
• Requirements to compensate workers for any harm or financial loss
The New Zealand government takes these responsibilities seriously, regularly monitoring employers and recruitment agencies for compliance.
These protections ensure that workers are not exposed to illegal recruitment practices or financial exploitation. They can also help you maintain good standing in the hiring process while upholding your employer’s rights and responsibilities.
What This Means for New Zealand Employers
Following the no placement fee policy means you take full responsibility for the costs of hiring migrant workers. It may feel like a big step, but it’s part of your legal and ethical duties—and it pays off in the long run.
Employers must shoulder all recruitment-related expenses
Under New Zealand labour laws, you’re expected to pay for everything involved in the recruitment process—recruitment agency fees, visa applications, documentation, travel, and relocation support.
This way, your workers can arrive in New Zealand without debt or financial pressure. They can start their roles focused, motivated, and ready to contribute without worrying about repaying large placement fees.
Emphasis on employer responsibility and transparency
The no-fee policy also means being upfront and honest during the hiring process. You need to communicate any recruitment costs and ensure there are no hidden charges for the workers.
Taking ownership of this process shows that you respect your workers and value fair treatment. It also helps build a workplace culture based on trust and transparency, which benefits both you and your team.
Builds trust and loyalty among migrant hires
When you follow the no placement fee policy, it tells your workers you’re committed to doing things the right way. Migrant workers who are treated fairly are more likely to stay loyal, work harder, and speak positively about their experience.
That kind of loyalty improves retention, saves you time and money on future hiring, and strengthens your reputation as an ethical employer. That can make a big difference when attracting top talent nowadays.
Why Ethical Recruitment Benefits Employers
Following ethical recruitment practices—especially the no placement fee policy—isn’t just about following the rules. It also creates real advantages for your business.
Improves Employer Brand and Compliance
When you hire fairly and cover all recruitment costs, it reflects well on your business. Ethical recruitment shows that you respect your workers and follow New Zealand’s labour laws. This builds a strong employer brand that attracts quality talent and earns trust in the market.
Plus, staying compliant means avoiding fines, penalties, or reputational damage, which can save you a lot of time and money down the line.
Enhances Retention and Job Satisfaction
Treating your workers fairly from the start, especially those who don’t have to pay just to get the job, encourages them to be more motivated and loyal. They arrive ready for work, without the stress of debt or broken promises. That kind of job satisfaction leads to better retention. You’ll have fewer resignations and a more stable, productive team.
Reduces Risk of Legal Issues or Labour Disputes
When you follow ethical recruitment practices, you reduce the chances of facing legal problems or worker complaints. Migrant workers who feel respected and supported are far less likely to raise disputes or challenge their working conditions.
Adhering to New Zealand labour laws means protecting your workers and your business.
Partner with Staffhouse for Compliant, No-Fee Recruitment
If you want to streamline your recruitment process and ensure full compliance with New Zealand’s ethical recruitment standards, partnering with a trusted recruitment agency is key.
Staffhouse International Resources is a recruitment agency in New Zealand that fully supports the “no placement fee” policy. We help employers source qualified, pre-screened talent without compromising compliance or quality.
With decades of experience in ethical recruitment, we ensure you meet all your staffing needs while you focus on growing your business.
Contact us today to start your journey into ethical recruitment.
