Selected cases

Employment Court of New Zealand · [2025] NZEmpC 208

Soapi and Others v Pick Hawkes Bay Inc

The Court found some deductions unlawful, emphasising that deductions must be agreed to in writing and not reduce pay below the minimum wage.

Employment Court of New Zealand15 Sept 2025

Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.

Get legal help

Start here

Quick read

  • Employers must be careful when making deductions from employees’ wages, especially for accommodation and other costs.
  • The Employment Court’s decision in Soapi and Others v Pick Hawkes Bay Inc addresses the lawfulness of wage deductions made by an RSE employer for accommodation and other...

Use this to check

  • Wage deductions must be agreed to in writing and not reduce pay below the minimum wage.
  • Accommodation deductions must be fixed by agreement or capped at 5% of wages.
  • Retaining employee passports is discouraged and may expose workers to exploitation.

Decision snapshot

  1. What happened

    • The plaintiffs, Lyn Soapi, Danny Lau, and Mary Lau, were citizens of the Solomon Islands recruited to work for Pick Hawke’s Bay Incorporated under the Recognised Seasonal Employer (RSE) scheme.
    • Pick Hawke’s Bay is a not-for-profit organisation supporting the horticulture and viticulture industries.
    • The plaintiffs worked multiple seasons in New Zealand, with Mrs Lau employed for 11 seasons.
    • The dispute arose from deductions made by Pick Hawke’s Bay from the plaintiffs’ wages for accommodation, pastoral care, and other costs.

  2. What the court had to decide

    • The legal issue was whether Pick Hawke’s Bay’s deductions from RSE workers’ wages for accommodation and other costs breached the Wages Protection Act 1983 and Minimum Wage Act 1983.
    • The Court examined if deductions were lawful, properly agreed to, and whether they reduced pay below the minimum wage.

  3. What the court decided

    • The Employment Court found that some deductions made by Pick Hawke’s Bay were unlawful.
    • Deductions must be agreed to in writing and not reduce pay below the minimum wage.
    • Accommodation deductions must be fixed by agreement or capped at 5% of wages.

Practical impact

Practical read

  • Employers must be careful when making deductions from employees’ wages, especially for accommodation and other costs.
  • Deductions must be lawful, agreed to in writing, and not reduce pay below the minimum wage.
  • Accommodation deductions must be fixed by agreement or capped at 5% of wages.
  • Practices like retaining employee passports or using debt repayment formulas that leave workers with little to live on can expose employers to legal risk and reputational harm.

Useful next steps

  • Wage deductions must be agreed to in writing and not reduce pay below the minimum wage.
  • Accommodation deductions must be fixed by agreement or capped at 5% of wages.
  • Retaining employee passports is discouraged and may expose workers to exploitation.
  • Debt repayment formulas that leave workers with little to live on are problematic.
  • Transparent agreements and fair treatment are essential for employers of migrant workers.

The story

This case involved three Solomon Islands citizens who worked for Pick Hawke’s Bay Incorporated under the RSE scheme. They were recruited to work in New Zealand’s horticulture and viticulture industries, often to support their families and further their education.

Pick Hawke’s Bay made deductions from their wages for accommodation, pastoral care, and other costs. The plaintiffs challenged these deductions, arguing they breached New Zealand’s wage protection laws. The dispute also highlighted concerns about passport retention, debt repayment formulas, and accommodation charges.

Key takeaways

  • Wage deductions must be agreed to in writing and not reduce pay below the minimum wage.
  • Accommodation deductions must be fixed by agreement or capped at 5% of wages.
  • Retaining employee passports is discouraged and may expose workers to exploitation.
  • Debt repayment formulas that leave workers with little to live on are problematic.
  • Transparent agreements and fair treatment are essential for employers of migrant workers.

What the Court decided

The Employment Court found that some deductions made by Pick Hawke’s Bay were unlawful under the Wages Protection Act and Minimum Wage Act. Deductions must be agreed to in writing and cannot reduce pay below the minimum wage. Accommodation deductions must be fixed by agreement or capped at 5% of wages.

The Court raised concerns about the retention of passports, the use of a reducing balances formula that left workers with little to live on, and the lack of transparency in accommodation charges. The judgment was sent to Immigration New Zealand for further consideration.

How to read this for your business

If you employ migrant workers or participate in the RSE scheme, this case is a reminder to review your wage deduction practices. Ensure all deductions are lawful, transparent, and agreed to in writing. Avoid practices that could be seen as exploitative, such as retaining passports or using debt repayment formulas that leave workers with insufficient funds.

Employment agreements should clearly set out any deductions, their purpose, and their amount. Regularly review your agreements and practices to ensure compliance with wage protection laws.

Operating checklist

Employers should follow these steps to stay compliant and avoid legal risk:

Common questions

Can employers deduct accommodation costs from RSE workers’ wages?

Yes, but only if the deduction is agreed to in writing and does not reduce pay below the minimum wage. The deduction must be fixed by agreement or capped at 5% of wages.

Is it lawful for an employer to retain an employee’s passport?

No. Retaining passports is discouraged and can expose workers to exploitation. The Ministry of Business, Innovation and Employment advises migrant workers not to give passports to their employer.

What happens if wage deductions reduce pay below the minimum wage?

Such deductions are unlawful. Employers must ensure that after any deductions, employees still receive at least the minimum wage.

What should employment agreements include regarding wage deductions?

Employment agreements should clearly specify any deductions, including their purpose and amount, and must be agreed to by the employee in writing.

Related topics

Employment & WorkplaceRegulatory ComplianceWages, Leave & PayrollDisputes, Enforcement & RemediesCharities, Clubs & Member GovernanceAgriculture, Farming & Rural BusinessImport, Export, Sanctions & CustomsMigrant Workers & Labour HirePayroll Deductions & Minimum Standards

How Sprintlaw can help

Employment lawEmployment contractsRegulatory compliance