Result for mistreated massage workers
VULNERABLE workers at a massage centre in the Meridian Mall, in Dunedin, have been vindicated after the Employment Relations Authority found they were harassed, underpaid, threatened, misled, sacked without cause and given illegal contracts.
Two employees of Elements Therapeutic Massage Ltd were underpaid $12,740 throughout the sixmonth ordeal and the harassment of one employee resulted in a police complaint being made against a manager.
The business was owned by Xuan Zhang, of Christchurch, but was run daytoday by newly qualified massage therapist Ping Du, who met Mr Zhang in Christchurch and convinced him to start the venture in May 2017, as Mr Du could not do so himself because of the status of his work visa.
A recent graduate known as Rebecca was on an open work visa when she was recruited by Mr Du in April 2018.
Her employment agreement said she would be paid $16.50 an hour but Ms Wang told the authority she was actually paid on a commission basis of 40%45% and as a result only made $40 a day on occasions, without ever getting holiday pay or payslips.
Another graduate on an open work visa known as Emily was employed by Mr Du in May 2018, who initially told her he was the owner and gave her permanent parttime hours, despite her being on a casual contract.
Rebecca had to frequently question her hours and pay with Mr Du, who would not divulge Mr Zhang’s contact details to either employee.
Both felt uncomfortable working alongside Mr Du, who left for a holiday in China from June to October 2018.
There, he sent emails that were ‘‘objectively harassing and inappropriately personal in content’’, the authority found.
Emily supported Rebecca to make a complaint to police about Mr Du’s behaviour.
While he denied subjecting Rebecca to unwelcome attention, he was not found to be credible given the plentiful amount of documentary evidence, the authority found.
When both staff members threatened to quit, Mr Zhang visited in July and convinced them to stay by promising that Mr Du would not return to the store.
During the meeting, Emily informed him she had made a complaint to the labour inspectorate about wages.
Mr Zhang suggested the employees could become contractors and assured her that arrears would be sorted out.
The authority found the contractor proposal was a ‘‘sham’’ on Mr Zhang’s part, given he was experienced in running a courier business while Emily had little understanding of the relevant employment rules and Rebecca was desperate to keep her job.
Emily quit for health reasons in September and police advised Rebecca when Mr Du returned to New Zealand on October 5.
The next day she contacted Mr Zhang, who summarily dismissed her with accusations of mismanagement, including of the centre’s money.
His email was found to have an ‘‘an objectively threatening tone’’, with threats of legal action and of reporting Rebecca to Immigration New Zealand or the Inland Revenue Department.
While Mr Zhang had told the employees he would deal with Mr Du’s behaviour, it had been just a ploy to keep Rebecca running the business until Mr Du returned, the authority found.
Mr Du was soon earning more than twice his previous wage and continued running the business until October 2021.
Mr Zhang told a labour inspector that the two employees had been ‘‘extorting and threatening’’ him and dismissed Rebecca’s report of harassment as ‘‘very ridiculous’’.
The authority found the 14 breaches of employment law to have been aggravated by the status of the employees as young and ‘‘objectively vulnerable’’ migrants.
Both Mr Zhang and Mr Du were found culpable for the breach of minimum standards, with Mr Zhang held personally liable for arrears.
A penalty of $8000 was imposed on Mr Zhang and $4000 on Mr Du, with Rebecca and Emily to get $4000 each. Costs were reserved.
While Elements Therapeutic Massage is still registered, it has ceased to trade and the Meridian Mall premises is now home to another massage business.
A police spokesman declined to comment on Rebecca’s complaint, citing privacy reasons.