Court says the wage breaches committed on the workers were 'intentional'
The Dunedin-based Jesus Aroma Church Trust (JACT) has been fined with over $100,000 for exploiting two vulnerable migrant workers.
The case stems from complaints received by a labour inspector from Song Choi on his behalf and for fellow migrant worker Andrew Jeon.
They were working at the JACT's Dunedin Taekwondo Academy as instructors, despite Song initially being called in as a pastor at the Church.
As claimed by the labour inspector, JACT did not comply with the Minimum Wage Act 1983 (MWA) during Song's employment period. They also claimed that there were beachers on holiday pay.
In Jeon's case, the inspector also claimed that JACT did not comply with the MWA from 2018, in addition to breaches under the Holidays Act 2003 and the Wages protection Act 1983.
Trustees of the church, who included Victoria Jeon, Joseph Jeon, and Mi Sun Leem, defended that Song "never worked as an employee" while Jeon was paid "more than the amount being claimed."
The Employment Relations Authority (ERA) sided with the migrant workers in the situation.
According to the ERA, given that Song expected to be rewarded and was rewarded for the Taekwondo work that he performed for the JACT, he was not a volunteer.
In the case of his employment, the ERA also ruled that Song was an employee as he started working at the Dunedin Taekwondo Academy under the direction of Victoria Jeon.
"JACT derived benefit from this, as the work was part of what JACT provided to clients of its Taekwondo business for a fee," the ERA said in its ruling. "I find that Song Choi was employed by JACT to do work for hire and reward under a contract of service."
Meanwhile, the ERA also sided with Jeon in stating that the JACT did not pay him the rate of salary monthly. The JACT also failed to produce a wages and time record for the employee.
"As explained, there is no discernible pattern to the frequency or amount of the payments," the ERA said.
According to the ERA, the JACT's breachers on the Wages protection Act 1983 were "intentional."
"That is apparent from the elaborate scheme to obtain money from Song Choi and the operation of Andrew Jeon's bank account as if it was Mrs Jeon's account," the ERA said.
The JACT is now ordered to pay Song $71,848 as arrears for wages, holiday pay, and the premium of $64,172 that he had paid to the trustees, according to the court document.
The trustees are also ordered to pay Jeon $49,634 for the premium he paid earlier. His wages and holiday pay arrears will be recalculated by the labour inspector.
For their violations in minimum employment standards, the JACT was also ordered to pay $42,750.
This case of migrant workers whose visas are tied to employers who breached employment obligations is "unfortunate," according to Stu Lumsden, Head of Compliance & Investigations, Labour Inspectorate.
"Moreover, these workers lacked access to support services, and they had no knowledge of what they were signing up for as the agreements were in English, which was not their primary language," Lumsden said in a statement.
The Labour Inspectorate is urging workers concerned about their employment situation or individuals concerned about the welfare of other migrant workers to reach out to the Ministry of Business Innovation and Employment.
The case comes as the government introduced last year the Worker Protection (Migrant and Other Employees) Bill to help protect migrant workers from exploitation.
"This bill will strengthen current measures and introduce new ones to crack down on employer non-compliance," said former Associate Minister for Workplace Relations and Safety Priyanca Radhakrishnan in a previous statement.
