More than 50 migrant workers are promised continued employment by new franchisee of four Auckland restaurants, but will need their visa terms varied.
McDonald's Auckland workers met their new bosses on Tuesday, after the restaurant chain's investigation into the previous franchisee ended this week in his removal.
Mat and Mel Tolhurst of TL Arches Trading are taking over from Prakash Hira, who had illegally required staff to sign up to bonded labour.
Hira Corporation owned four McDonald's stores in prime central Auckland locations: Quay St, Britomart, Queen St and Pt Chevalier.
The fast food giant was notified of Hira's conduct following inquiries by Newsroom about workers receiving "commitment to employment" letters requiring them to pay $3000 bond to cover hiring, onboarding, training and several administrative costs, if they left within a year.
Training bond schemes are legal if the training course paid for by the employer is a legitimate added extra, but some employers are misusing this to illegally secure workers into term agreements.
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McDonald's staff were informed about the business being sold last week, and on Tuesday night they met with their union to discuss their futures.
Workers were told, subject to their legal right to work, they would be offered employment by the new owner – but things are slightly tricker for the stores' migrant workers.
The company has told migrant workers, whose visas were linked to the Hira Corporation, they must apply for a variation of conditions to show a change of employer.
A McDonald's worker said a significant number of employees would be affected by this, as Hira Corporation employed at least 50 migrants across the four stores.
McDonald's would not comment on how the visa variation process would work, but Unite Union McDonald's representative Gary Cranston the fast food company would reimburse staff visa fees which can cost up to $500.
The migrants on visas linked to Hira Corporation could continue to work at McDonald's while their visa conditions were being updated, Cranston said.
According to Immigration NZ, variation of conditions on a work visa typically took up between two weeks and 26 days.
A company spokesman said McDonald's was working towards an "orderly transition of the restaurants to new owners, with the best interests of employees in mind".
In a departure letter, Hira told staff the ownership of his stores would go to TL Arches Trading on July 1. TL Arches Trading, which previously owned a rural McDonald's store, will take over all four stores.
Hira said: "We have loved owning this store and working with you all... Don't worry nothing will change for you except the person who pays your wages... Thank you for all your hard work. We will miss you."
His letter also told staff their pay rate and hours would remain the same and their final pay by Hira Corporation would be made on June 29.
McDonald's head office took over management of Hira's stores last month while he was being investigated about the bonded labour complaint.
MBIE said the case had not been escalated to the Labour Inspectorate.
