An Employment Relations Authority (ERA) decision said Chaoliang Zhang was given a job in August 2023 by Mr Noodles Queenstown Ltd, which trades as No.8 Noodle Bar in Frankton’s Queenstown Central shopping area.
Mr Zhang had got in touch with Mr Noodles’ owner and sole director, Xiaoling Peng, after getting his contact information from a friend, soon after arriving in New Zealand.
After an interview in Auckland, Peng offered Mr Zhang a job on a wage of $29.66 an hour, as well as accommodation at a backpackers hostel paid for by Mr Noodles.
The day after signing an employment agreement, Mr Zhang was told to pay $3730 — to a bank account of Peng’s sister — for arranging his work visa.
Mr Zhang soon found himself usually working 12 hours a day, and often seven days a week.
He was not paid for all the hours he was working, nor was he given holiday pay or paid for public holidays he worked.
Mr Zhang finally quit the following April after becoming increasingly stressed by the situation.
He took a case to the ERA claiming constructive dismissal — that Peng’s actions had effectively forced him to resign — and sought the return of the $3730 payment, wage arrears and compensation.
In his decision, ERA member Peter van Keulen said the $3730 "premium for employment" Peng had demanded was unlawful.
The complainant’s records showed he had worked excessive hours, and Mr van Keulen accepted the "constant underpayment" had caused stress that had increased over time.
He also accepted the claim of constructive dismissal, saying Mr Zhang’s resignation was foreseeable in the circumstances.
The complainant had suffered "significant distress", compounded by his financial problems, and he had felt "helpless and isolated".
Mr van Keulen noted Peng had ignored all communications from the ERA, and had not taken part in a case management hearing or an investigation meeting last September.
He ordered Mr Noodles to pay Mr Zhang $62,831 for wage arrears, to return the illegal $3730 payment, and pay him $18,000 compensation and $2250 in costs.
