Chaoliang Zhang v Mr Noodles Queenstown Limited - [2026] NZERA 16

This page summarises and embeds an Employment Relations Authority (ERA) determination. It is not legal advice.

Background

Mr Zhang was employed as a fast food cook by Mr Noodles Queenstown Limited. He said the employer (through its director) required him to pay money for a work visa and employment, then did not pay him correctly for the hours he worked, public holidays, and accrued holiday pay. He said the long hours and underpayment caused stress and he resigned. He claimed the resignation amounted to constructive dismissal.

Key factual findings

• Mr Zhang signed an employment agreement on 14 August 2023 and started work on 18 August 2023.
• He was instructed to pay 15,000 RMB (recorded in the determination as NZD $3,730) to a bank account provided for his employment/visa.
• His evidence and records showed long, variable hours, including periods working 7 days per week.
• The employer did not participate in the Authority process and the matter was determined in its absence.

What the ERA decided

1) Unlawful premium

The Authority applied s 12A of the Wages Protection Act 1983 (no premium for employment) and found the payment was demanded and made. It was an unlawful premium and Mr Zhang was entitled to repayment.

2) Wage arrears and holiday pay

The Authority accepted Mr Zhang's time and payment records and assessed (gross) arrears for:

• Unpaid hours: NZD $56,522 (net payments and accommodation deductions accounted for)
• Public holidays worked: NZD $711
• Holiday pay (8%): NZD $5,598

Total wage arrears were assessed at NZD $62,831 (gross).

3) Constructive dismissal

The Authority found Mr Zhang resigned rather than being directly dismissed, but accepted that the resignation was in response to breaches by the employer (underpayment and the employment premium). The Authority treated the resignation as a constructive dismissal and awarded compensation.

Orders (money)

Practical takeaways

• Premiums are high-risk: Taking money "for a job" (including visa-related demands) can trigger repayment orders under the Wages Protection Act.
• Records matter: A credible time-and-pay record can be enough to prove arrears, particularly where the employer does not participate.
• Resignation can still be dismissal: If the employer's breaches leave the employee with little practical choice, a resignation may be treated as constructive dismissal.

Read the full ERA determination (embedded)

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Source: Employment Relations Authority determination hosted on determinations.era.govt.nz.