A Christchurch massage business and its sole director have been ordered to pay $210,000 in penalties for exploiting vulnerable migrant workers, on top of more than $230,000 already agreed to be paid in unpaid wages and entitlements.

The Employment Relations Authority found that Mother’s Thai, trading as Diamond Thai, and its owner Janya Duangjai committed 55 separate breaches of minimum employment standards between November 2020 and 2023.

A Labour Inspectorate investigation completed in September 2024 revealed the business had failed to pay the minimum wage for all hours worked, unlawfully deducted money from employees’ pay, and charged workers an unlawful premium for their employment.

The business also failed to keep copies of employment agreements, failed to pay correct public holiday and sick leave entitlements, and failed to keep complete wages and time records.

ERA Member Peter van Keulen ordered Mother’s Thai to pay a penalty of $140,000 and the owner a further $70,000. Of those amounts, $21,000 will go to each of the five affected workers.

In his determination, van Keulen said the breaches were significant and had denied the five employees $231,737 they were owed.

“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.

He noted that although Mother’s Thai had conceded the breaches and agreed to the amounts owed, there was no evidence the workers had been paid, and the business was no longer operating.

“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,” van Keulen said.

“It appears that Mother’s Thai, through Duangjai, took advantage of the employee’s vulnerability.”

Labour Inspectorate Migrant Exploitation Manager Natalie Gardiner welcomed the heavy fines, calling the case a particularly egregious example of migrant exploitation.

“The significant penalties imposed by the Authority reflect the seriousness of the harm caused to these workers,” she said.

“This outcome follows a detailed and lengthy investigation by the Senior Labour Inspector, made more complex by the employer’s failure to maintain accurate records and the workers’ understandable fear about speaking up.”

Gardiner said migrant workers were especially vulnerable due to language barriers, visa constraints, and limited knowledge of their rights.

“It is unacceptable for employers to take advantage of that vulnerability for their own financial gain.”
She added that the decision sent a clear message that structural changes to company ownership would not shield wrongdoers from enforcement, and that directors could be held personally accountable for serious breaches of employment law.

“Employers who deliberately underpay staff, charge unlawful premiums or ignore basic employment obligations should expect strong enforcement action by labour inspectors,” Gardiner said. “These types of practices have no place in New Zealand.“​​​​​​​​​​​​​​​​