The penalties are in addition to more than $230,000 that the business, Mother’s Thai trading as Diamond Thai, and its owner Janya Duangjai previously agreed to pay five workers following an investigation by the Labour Inspectorate.
The investigation, completed in September 2024, found there had been 55 separate breaches of minimum employment standards occurring between November 2020 and 2023.
Mother’s Thai and Ms Duangjai accepted they had, amongst other breaches:
- Failed to pay the minimum wage for all hours worked.
- Unlawfully deducted money from employees’ pay.
- Charged employees an unlawful premium for their employment.
- Failed to keep copies of employees’ employment agreements.
- Failed to pay correct public holiday and sick leave entitlements.
- Failed to keep complaint wages and time records.
ERA Member Peter van Keulen ordered Mother’s Thai to pay a penalty of $140,000 and Ms Duangjai a further $70,000. Of these amounts $21,000 is to be paid to each of the 5 workers.
Labour Inspectorate Migrant Exploitation Manager Natalie Gardiner welcomed the heavy fines. “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.
“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.
“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.”
Ms Gardiner said migrant workers can be 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 said the ERA decision showed that despite structural changes occurring with the company ownership and shareholdings, enforcement action “can still be taken and that directors can be held personally accountable for serious breaches of employment law.”
In his determination Mr van Keulen said the breaches by Mother’s Thai were significant and meant the 5 employees had been denied $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 although Mother’s Thai conceded it breached employment standards and agreed to the amounts owed to the workers, there was no evidence the workers had been paid and Mother’s Thai 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.
“It appears that Mother’s Thai, through Ms Duangjai, took advantage of the employee’s vulnerability,” he said.
In his determination Mr van Keulen said that given the number and seriousness of the breaches and the amount of the arrears owed to employees, higher penalty amounts were warranted.