Labour Inspectorate defends its handling of Gloriavale claims

Commune alleged to have denied 61 workers’ basic employment rights for years. (Source: 1News)

The Labour Inspectorate is defending its handling of Gloriavale employment claims after being accused of failing former residents.

Lawyers acting for 61 former community members have filed fresh proceedings with the Employment Relations Authority seeking unpaid wages, employment entitlements, and personal grievance damages.

Yesterday, Gloriavale Leavers’ lawyer Stephen Patterson told 1News the case had become necessary because the Labour Inspectorate failed to file its own compensation claim within the six-year statutory time limit.

Fellow lawyer Brian Henry went further, claiming the agency had "totally failed" the former residents it was supposed to protect.

In response, Labour Inspectorate Head Simon Humphries acknowledged the experiences of former residents and the impact the lengthy legal process had had on them.

Humphries said the Labour Inspectorate acted after Employment Court decisions in 2022 and 2023 found several former residents were employees, seeking compensation and penalties on their behalf.

But he noted the Employment Court ruled in May this year that those compensation claims were filed outside the applicable limitation period. The Labour Inspectorate has appealed that decision and the matter remained before the courts.

Humphries said the agency had reflected on the court decisions and continued to strengthen how it assesses employment relationships, particularly in complex situations.

The Labour Inspectorate declined to comment directly on the new claim lodged this week, saying it is not a party to the proceedings, but said it continues to maintain oversight of employment matters at Gloriavale and remains available to support people who raise concerns about potential breaches of employment standards.

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