Yu Chunyan, Sun Tingting, Liu Danhua, Zhang Shijie v Miaodi's Laundromat Ltd t/a Mr Suds and Yang Yang [2026] NZERA 31

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

Story in plain English

This case involved four migrant laundry workers employed by a laundry business in Auckland. The employer had accreditation to employ workers from overseas and recruited several of the applicants from China. The employment agreements stated minimum weekly hours (30 or 32 hours) and hourly rates around the high-$20s.

During 2023 the workers said they were not paid all wages due. In December 2023 they approached MBIE and raised migrant exploitation concerns. In mid-January 2024 they were issued Migrant Exploitation Protection Visas (MEPVs), which are open work visas.

In February 2024, after the employer carried out visa checks, a message was sent in the workplace WeChat group suspending the four applicants "effective immediately". The employer sought clarification about their visa status and warned it would report matters to Immigration if no explanation was provided. The workers did not clearly confirm their MEPVs to the employer at the time because they said they were scared.

After the suspension, the employer provided no further work. No formal termination letter was issued, but the Authority found that the employer's actions amounted to "sending away" the employees at the employer's initiative. The Authority held that this constituted dismissal, and it was unjustified in the circumstances.

The Authority also found the employees were unjustifiably disadvantaged by the employer's wage practices. The decision records findings that wages were not paid when due and that withholding pay resulted in the employees being paid below minimum wage for much of the period. Holiday pay obligations and wage/time record-keeping obligations were also addressed.

Key findings (what the Authority decided)

• Unjustified dismissal: Upheld. No work was provided after the suspension and the Authority treated that as dismissal.
• Unjustified disadvantage: Upheld. Wages were not paid as required and holiday pay entitlements were not met.
• Good faith and minimum standards: The employer was found to have breached several statutory obligations, including wages/holiday and record-keeping requirements.
• Contribution: The Authority reduced compensation by 10% because the employees did not tell the employer (when asked) that they held valid MEPVs.
• Costs: Reserved (not decided in this determination).

Orders and payments (as recorded in the determination)

Wage arrears and holiday pay (agreed figures):

• Chunyan Yu: $7,159.92 gross
• Danhua Liu: $6,705.44 gross
• Shijie Zhang: $7,873.83 gross
• Tingting Sun: $7,264.02 gross

Lost remuneration (s 128) - 13 weeks:

• Chunyan Yu: $11,567.00 gross
• Danhua Liu: $11,648.00 gross
• Shijie Zhang: $11,567.00 gross
• Tingting Sun: $11,648.00 gross

Compensation (humiliation, loss of dignity, injury to feelings) after 10% contribution reduction:

• Chunyan Yu: $18,000.00
• Danhua Liu: $18,000.00
• Shijie Zhang: $18,000.00
• Tingting Sun: $18,000.00

Penalty: $10,000.00 payable into the Authority within 28 days (to be transferred to a Crown bank account on recovery).

Note: The determination records that Miaodi's and Mr Yang were jointly and severally responsible for payment of the ordered amounts. All payments were to be made within 28 days of the date of the determination. Always check the PDF for full context and any gross/net directions.

Practical takeaways

• Suspending employees and then providing no work can amount to dismissal, even if no termination letter is issued.
• Wages must be paid when due. "Catch-up later" arrangements (without a lawful basis) can breach minimum standards.
• Where underpayment or record-keeping failures affect vulnerable workers, penalties can follow in addition to compensation.
• Even where an employer is entitled to verify visa status, the process and communications still need to be fair and reasonable.

Read the full ERA determination (embedded)

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