A Christchurch massage business and its owner have been ordered to pay a combined $210,000 following a determination that they exploited vulnerable migrant workers. Mother’s Thai, which traded as Diamond Thai, and its owner, Janya Duangjai, were found to have deliberately underpaid staff and ignored basic employment obligations.
Systemic Exploitation and Legal Breaches
An investigation by the Labour Inspectorate, completed in September 2024, revealed a pattern of systemic abuse. The probe found that Duangjai and the business breached minimum employment standards 55 times across five different employees.
These breaches included failing to pay the minimum wage for all hours worked and making unlawful deductions from workers’ pay. The business charged employees illegal premiums simply for their employment.
The investigation further discovered that the business failed to maintain compliant wage and time records. It also failed to keep copies of employment agreements or correctly pay entitlements for sick leave and public holidays.
The Authority’s Determination
ERA member Peter van Keulen stated that the breaches appeared to be mostly deliberate. He noted that the business “took advantage” of the vulnerability of its staff, who were migrant workers with limited support and knowledge of their rights.
Although Mother’s Thai conceded the breaches and initially agreed to pay the owed amounts, there was no evidence that these payments were ever made. The business is no longer operating.
Due to the seriousness and number of breaches, the ERA ordered Mother’s Thai to pay a penalty of $140,000 and Janya Duangjai to pay an additional $70,000. Each of the five workers will receive $21,000.
Impact and Implications
Natalie Gardiner, the Labour Inspectorate’s migrant exploitation manager, described the case as a “particularly egregious example” of exploitation. She noted that the investigation was made more complex by the workers’ understandable fear of speaking out and the employer’s lack of accurate records.
Gardiner emphasized that factors such as visa constraints and language barriers make migrant workers especially vulnerable. She asserted that such practices have no place in New Zealand and that employers ignoring basic obligations should expect strong enforcement action.
Future Outlook
Following this ruling, other businesses employing migrant staff may face increased scrutiny from the Labour Inspectorate. This proves likely that enforcement actions could intensify for any employer found to be charging unlawful premiums or underpaying staff.
A possible next step for the authorities could be a broader focus on industries where migrant vulnerability is high, as this decision reinforces that directors can be held personally accountable for serious breaches.
Frequently Asked Questions
What were the total penalties imposed?
The Employment Relations Authority ordered a combined payment of $210,000, with $140,000 attributed to Mother’s Thai and $70,000 to its owner, Janya Duangjai.
How many workers were affected and what will they receive?
Five migrant workers were affected by the breaches, and each will receive $21,000.
What specific employment standards were breached?
The breaches included failing to pay minimum wage, making unlawful pay deductions, charging illegal employment premiums, failing to keep employment agreements, and failing to provide correct sick leave and public holiday pay.
Do you believe current penalties are sufficient to deter the exploitation of migrant workers in the service industry?
