No further investigation or enforcement action is being taken into allegations of Gloriavale members being overworked after the Labour Inspectorate has found community members were not considered employees under New Zealand legislation.
National Manager Labour Inspectorate Stu Lumsden conducted an inquiry into the employment status of people living and working at Gloriavale in 2017 after concerns raised by Charities Services, then again in 2020 after allegations of long working hours were made by two community members.
However in a statement today, the Ministry of Business, Innovation and Employment (MBIE) said: "The results of both inquiries showed that no employment relationships existed within Gloriavale as defined by New Zealand employment law and that the matter therefore falls outside of the Inspectorate’s jurisdiction."
Employment law defines an employee as a person who has agreed to do any work for some form of payment or reward under a contract of service, Lumsden said.
"The evidence we evaluated showed that people who have lived or are living at Gloriavale gave service to the community without the expectations of being paid as individuals," he explained.
Lumsden said he interviewed 39 current and 13 former members of the Gloriavale community between September last year and Februrary this year, and reviewed a range of documents provided by the community and individual members.
He also said he sought advice from Crown Law in relation to the employment status of the residents.
Documents signed by Gloriavale members suggest that it was not the intention of the parties to enter into an employment relationship, he found.
The intention of the parties was instead to create a sharing community with religious beliefs as the focal point, and that work is a means of providing for the whole community, rather than for individual gain.
It also found all Gloriavale members typically receive the same benefits regardless of their role and that no individuals enrich themselves by taking profits earned by Gloriavale.
Lumsden also said there was no evidence that community members currently come under duress to sign the documents that define their relationship with Gloriavale and that there was evidence that reasonable steps had been taken to support well informed decision-making, including independent legal advice.
“We understand there may be concern about whether individuals were able to make fully informed decisions while residing at Gloriavale, but this is not something the Labour Inspectorate can address within the scope of employment law," he said.
“While we cannot take any further action at this point, the Labour Inspectorate will continue to monitor the situation at Gloriavale, and will take note of any new complaints or information.”
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