Christchurch Massage Parlor Fined $210,000 After Lengthy Investigation Reveals Systematic Exploitation of Migrant Staff

The Employment Relations Authority has ordered the owner of Diamond Thai to pay heavy penalties for exploiting five migrant workers through systemic wage breaches.

By: AXL Media

Published: Apr 23, 2026, 4:24 AM EDT

Source: RNZ Pacific

Significant Penalties for Labor Violations A Christchurch based massage business has been hit with a $210,000 fine following a harrowing case of migrant worker exploitation. Mother’s Thai, which operated under the name Diamond Thai, along with its owner Janya Duangjai, were found responsible for systemic breaches of New Zealand employment law. While the parties had previously reached an agreement to pay five workers a total of $230,000, the Employment Relations Authority (ERA) noted that there was no evidence these payments were ever made, and the business has since ceased operations.

Systemic Breaches and Financial Penalties The investigation into the business, which concluded in late 2024, uncovered 55 separate breaches of minimum employment standards occurring between November 2020 and 2023. These violations included the failure to pay the statutory minimum wage, making unauthorized deductions from staff paychecks, and the illegal practice of charging employees a premium in exchange for their employment. Consequently, ERA member Peter van Keulen ordered Duangjai to personally pay $70,000 of the total penalties imposed.

A Complex and Lengthy Investigation According to the Labour Inspectorate, the inquiry was particularly difficult due to the employer’s failure to maintain accurate records. Natalie Gardiner, the Migrant Exploitation Manager for the Inspectorate, characterized the case as an "egregious example" of harm caused to vulnerable workers. The investigation was further slowed by the victims' understandable hesitation to speak out against their employer, a common barrier in cases involving migrant staff who may fear for their visa status or livelihoods.

Vulnerability and Lack of Support The ERA highlights that the five workers involved had limited understanding of their employment rights and lacked a support network to help them challenge their treatment. Peter van Keulen stated that the business and Ms. Duangjai actively took advantage of this vulnerability. This case serves as a warning that structural changes to company ownership or shareholdings will not shield directors from personal accountability when serious labor breaches are identified by authorities.

Strategic Implications for the Labor Market This ruling underscores a tightening of enforcement in New Zealand’s small business sector, particularly in industries heavily reliant on migran...