A central Dunedin massage store has once again found itself in hot water for exploiting its staff.
Elements Therapeutic Massage Ltd has been ordered to pay former manager Ping Du, also known as Patrick, more than $45,000 in penalties, lost wages and interest.
Mr Du was a massage therapist who helped establish the shop at the Meridian Mall in 2017.
It ran until a new owner took over in late 2021.
Its registered owner was Xuan Zhang, also known as Nick.
The Ministry of Business, Innovation and Employment (MBIE) said it had information he was not living in New Zealand. It is understood he has returned to China.
A previous Employment Relations Authority (ERA) decision, released in August, found the company, Mr Du and Mr Zhang liable for a litany of employment breaches, in which three "objectively vulnerable" migrant workers were underpaid, threatened, misled, sacked without cause and given illegal contracts.
That case also found Mr Du had sent emails that were "objectively harassing and inappropriately personal in content" to one female employee.
Another former employee told the Otago Daily Times she believed she had miscarried as a result of stress due to working at the store.
Mr Du denied any wrongdoing and said all claims of harassment against him were fabricated.
A new ERA decision ruled on a case Mr Du brought against Mr Zhang and the company.
Mr Du claimed he was not paid his holiday entitlements or for his final weeks of work, and sought further compensation for hurt and humiliation caused by Mr Zhang suddenly stopping his communications with him.
The company and Mr Zhang claimed Mr Du had been the driving force behind establishing and managing the business, and had stopped his own pay.
The company is now held by Cheng Liu, of Christchurch, who Mr Du told the ERA was Mr Zhang’s landlord.
Mr Liu offered to attend mediation with Mr Du, but the latter refused without Mr Zhang’s attendance, the ruling said.
Neither the company nor Mr Zhang appeared at the investigation meeting.
It proceeded based on questions to Mr Du, his written statement and other evidence.
The ruling found he did not have control over payments to himself and, in the absence of of company records, it was found he never took any annual leave during his employment.
While Mr Du sought to hold Mr Zhang personally liable, this was not successful.
Compensation of $2000 was ordered for Mr Du’s claim he suffered hurt and humiliation, which the ERA agreed with. Mr Du was also awarded $39,619 in wage and holiday pay arrears, plus interest, and $4500 costs.
In a separate finding in relation to the ERA decision in August, Mr Du was ordered to pay MBIE $1600 towards legal costs, while Mr Zhang was ordered to pay $6700.
