Palmerston North Director Sentenced for Migrant Exploitation
WEB'S ON FIRE
Chaifry
7/7/20266 min read
In a landmark ruling that underscores New Zealand’s commitment to protecting vulnerable migrant workers, a Palmerston North company director has been held accountable for a calculated scheme of financial exploitation. On 6 July 2026, Dodamwalage Kalani Helikumari Jayawardhana, commonly known as Kalani, was sentenced in court following a thorough investigation by Immigration New Zealand (INZ). The case has sent a strong message to employers across the country: exploiting migrant workers for personal financial gain will not be tolerated.
Jayawardhana, who served as a director of Computer Express 24 Care Limited, a business based in Palmerston North, was found guilty of three charges of migrant exploitation. She received a sentence of two years’ imprisonment, to be served as 12 months of home detention. In addition, the court ordered her to pay reparation totaling NZD $59,657.68. This amount includes wage arrears owed to the victim, outstanding Pay As You Earn (PAYE) tax contributions, and NZD $15,000 that was unlawfully demanded from the worker during her employment.
The Victim’s Harrowing Ordeal
The victim, a Sri Lankan national who arrived in New Zealand seeking better opportunities and a pathway to residency, was employed as an office manager at Computer Express 24 Care Limited. What should have been a chance to build a new life turned into a nightmare of repeated financial pressure and abuse of power.
According to details released by INZ, the workers faced ongoing demands for substantial sums of money. These included repayments of wages she had legitimately earned, as well as additional payments totaling tens of thousands of dollars. The exploitation occurred while she was navigating the complexities of New Zealand’s immigration system, including efforts to progress her residence application. This type of “wage recycling” where employers force workers to hand back earned wages represents one of the most insidious forms of migrant exploitation.
For many migrants, particularly those from countries like Sri Lanka, the journey to New Zealand is driven by aspirations of stability, higher earnings, and long-term settlement. Sri Lankans form a notable part of New Zealand’s migrant community, with many contributing to sectors ranging from healthcare and IT to small businesses. However, limited English proficiency in some cases, unfamiliarity with local employment laws, and dependency on employer sponsored visas can create power imbalances that unscrupulous employers exploit.
The victim’s courage in coming forward cannot be overstated. Reporting exploitation often carries significant risks, including potential loss of employment, visa complications, and social isolation in a new country. Yet, by speaking up, she not only secured justice for herself but also helped protect others from similar fates.
INZ Investigation and the Road to Accountability
Immigration New Zealand’s investigation into this case highlights the agency’s growing focus on combating migrant exploitation. National Manager Investigations Jason Perry described the offending as “a serious abuse of power.”
"A migrant worker came to New Zealand looking for opportunity and a better future. Instead, she was repeatedly pressured to hand over substantial sums of money to the very person who employed her," Perry said.
He emphasized that no worker should ever have to pay an employer for a job or the prospect of a better future.
"No employer has the right to treat a worker like a source of income. This worker’s wages should have been supporting her future, not funding her employer."
Perry further noted that such exploitation strikes at the heart of New Zealand’s employment and immigration systems.
"People come to New Zealand to work hard, support themselves and create opportunities for themselves and their families. Employers who seek to profit from those aspirations are exploiting people at their most vulnerable. The harm caused by migrant exploitation goes far beyond monetary loss. It can leave workers feeling trapped, isolated, and afraid to speak up. No one should have to choose between standing up for their rights and risking their livelihood."
The outcome, according to Perry, serves as a clear warning to employers.
"These investigations can be lengthy and complex, but they are critically important. I want to acknowledge the courage and resilience of the victim in this case... I also want to acknowledge the dedication of our investigators, whose persistence ensured this offending was uncovered and those responsible were held to account."
Broader Context: Migrant Exploitation in New Zealand
This case is not an isolated incident but part of a wider pattern that has drawn increasing attention from authorities, researchers, and advocacy groups. According to surveys, a sizable portion of New Zealanders recognize migrant exploitation as a genuine issue. One 2025 Horizon Research survey found that 57% of adults agree it is a fundamental problem, with 15% reporting personal or known experience of such exploitation.
New Zealand’s migrant workforce plays a vital role in the economy, filling skill shortages in industries like healthcare, construction, agriculture, and IT services. However, temporary migration schemes such as the Accredited Employer Work Visa (AEWV) can inadvertently heighten vulnerability when workers’ visas are tied to specific employers. This dependency can discourage reporting of abuses for fear of job loss and deportation.
Common forms of exploitation include underpayment of wages, excessive working hours without proper compensation, unlawful deductions, passport retention, and demands for “premiums” or kickbacks for visa sponsorship. In this Palmerston North case, the “wage recycling” element forcing the return of earned wages adds a particularly brazen layer of financial manipulation.
Government responses have strengthened over recent years. Budget 2026 allocated additional resources for frontline teams to tackle exploitation and immigration non compliance. Joint operations between INZ, the Labour Inspectorate, and other agencies have led to more prosecutions. Penalties under the Immigration Act 2009 can include fines up to $100,000 and imprisonment for up to seven years for serious cases.
Historical Precedents and Similar Cases
New Zealand has seen several high-profile migrant exploitation cases in recent years. In 2025, a business owner in Hamilton and Auckland faced multiple charges, resulting in home detention and substantial reparations. Another notable case involved operators in the hospitality sector who underpaid workers and shifted visa costs onto them.
One of the most severe precedents remains the 2020 conviction of Joseph Auga Matamata, who received 11 years in prison for slavery and human trafficking involving Samoan workers. These cases illustrate that exploitation spans various industries and nationalities, from Pacific communities to Asian migrants.
Sri Lankan migrants, while well-integrated in New Zealand, are not immune. Many arrive with high skills in business, finance, and technology, yet face barriers such as credential recognition and cultural adjustment. Community organizations like the Manawatū Multicultural Council in Palmerston North play important roles in supporting such migrants.
Legal Framework and Worker Protections
New Zealand law provides robust protections. Migrant workers enjoy the same employment rights as Kiwi workers, including minimum wage, holiday pay, and safe working conditions. The Migrant Exploitation Protection Visa (MEPV) offers a critical safety net, allowing victims to remain in the country while investigations proceed.
Employment New Zealand and INZ encourage reporting through dedicated channels. Workers can file complaints anonymously or seek support from community advocates. Employers found non-compliant risk not only criminal penalties but also bans from sponsoring future visas.
In this case, the reparation order directly addresses financial harm. The $59,657.68 will help the victim recover lost wages and cover tax obligations, though full emotional and psychological recovery may take longer. Reports suggest the victim may face a lengthy wait for full repayment, highlighting challenges in enforcement of reparation orders.
Economic and Social Impacts
Migrant exploitation undermines New Zealand’s reputation as a fair and welcoming destination. It distorts labor markets, disadvantages ethical employers, and harms productivity. Exploited workers often experience mental health issues, financial stress, and diminished trust in institutions.
On a broader scale, with net migration fluctuating and labor shortages persisting in many regions, protecting workers is essential for sustainable economic growth. Palmerston North, a regional hub with a growing multicultural community, relies on migrant contributions in services and care sectors, the very areas linked to the offending company.
Lessons Learned and Prevention Strategies
This sentence offers several key lessons:
For Employers: Compliance with employment law is non-negotiable. Transparent payroll practices, proper contracts, and respect for worker rights protect both parties. Businesses should seek advice from MBIE or legal experts when hiring migrants.
For Migrants: Know your rights before accepting employment. Resources from Immigration New Zealand and Employment New Zealand are available in multiple languages. Building networks within community groups can provide support.
For Policymakers: Continued investment in enforcement, visa reforms to reduce employer dependency, and public awareness campaigns are vital. Strengthening inter agency collaboration has proven effective.
For Communities: Fostering inclusive environments where migrants feel safe to report issues can deter exploitation.