A Christchurch massage business and its owner have been ordered to pay a combined $210,000 for exploiting "vulnerable" migrant workers.
Mother’s Thai, trading as Diamond Thai, and its owner, Janya Duangjai, deliberately underpaid staff, charged illegal employment premiums, and ignored "basic employment obligations".
The order, from the Employment Relations Authority, came after an investigation by the Labour Inspectorate.
The probe, completed in September 2024, found that Duangjai and Diamond had breached the minimum employment standards for five employees 55 times.
The breaches included failing to pay minimum wage for all hours worked, unlawfully deducting money from workers' pay, and charging employees illegal premiums for their employment.
It also found that Duangjai and her business had failed to keep copies of workers' employment agreements, to correctly pay public holiday and sick leave entitlements, and to keep compliant wages and time records.
In his determination, ERA member Peter van Keulen said the five workers had been denied $231,737 because of the breaches.
“On balance, I think most of those breaches were deliberate, but to a certain extent informed by an incorrect view of how remuneration and employee entitlements could be structured and paid.”
He said Mother’s Thai, through Duangjai, "took advantage" of its employees' vulnerability.
“It appears that employees of Mother’s Thai were migrant workers with limited knowledge about their employment rights and little support in terms of questioning their pay and other entitlements," he said.
Mother’s Thai conceded it had breached employment standards and agreed to pay the amounts owed to workers. However, there was no evidence that they had been paid, and Mother’s Thai was no longer operating.
Van Keulen said the number and seriousness of the breaches warranted higher penalties.
Mother's Thai was ordered to pay $140,000, while Duangjai was ordered to pay a further $70,000. Each of the five workers will receive $21,000.
Labour Inspectorate migrant exploitation manager Natalie Gardiner said the workers' "understandable fear" of speaking out and lack of accurate records made the investigation "more complex".
She said migrant workers could be "especially vulnerable" due to factors like language barriers, visa constraints, and limited knowledge of their rights in New Zealand.
“It is unacceptable for employers to take advantage of that vulnerability for their own financial gain," Gardiner said.
"This was a particularly egregious example of migrant exploitation, and the significant penalties imposed by the Authority reflect the seriousness of the harm caused to these workers.
“Employers who deliberately underpay staff, charge unlawful premiums or ignore basic employment obligations should expect strong enforcement action by labour inspectors. These types of practices have no place in New Zealand.”
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