ZHANG v PENG and ANOR [2026] NZERA 16

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

Story in plain English

Mr Zhang paid a "premium" to obtain employment, then worked at a restaurant run by the respondents. The Authority found the premium was unlawful and that Mr Zhang was owed substantial wage arrears. Mr Zhang later resigned. The Authority held the resignation amounted to a constructive dismissal and found the dismissal was unjustified. The Authority ordered repayment of the premium, wage arrears, compensation for hurt and humiliation, and costs.

Key case markers

• Authority member: Peter van Keulen.
• This determination comes from the Christchurch registry.
• The parties are ZHANG (employee) and PENG and ANOR (employer).
• Personal grievance type: unjustified dismissal (constructive dismissal).
• Hearing date noted: 25 September 2025 by AVL.

Key events described (as described by the Authority)

• I investigated Mr Zhang's employment relationship problem with Mr Noodles by receiving written evidence and documents from him and holding an investigation meeting on 25 September 2025.
• On 15 August 2023 Mr Zhang was instructed to pay 15,000 RMB (NZD $3,730) to Ms Peng's sister, for his employment.
• In this case Mr Zhang was not dismissed by Mr Noodles, rather, he resigned.
• Mr Zhang argues that because he resigned in response to breaches of duty by Mr Noodles, his resignation should be treated as a dismissal - a constructive dismissal.
• Mr Zhang's resignation amounts to a dismissal by Mr Noodles.
• The current rate of the daily tariff is $4,500 for the first day of the investigation meeting and $3,500 for any subsequent days. 6 For further information about the factors considered in assessing costs, see: www.era.govt.nz/determinations/awarding-costs-remedies/#awarding-and-paying-costs-1.

Decision markers (as described by the Authority)

• The premium payment was found to be unlawful and was ordered to be repaid.
• Wage arrears were found and ordered to be paid.
• Constructive dismissal was found, and the dismissal was held to be unjustified.

Orders and payments mentioned

• Repayment of unlawful premium: $3,730 (payable within 28 days).
• Wage arrears: $62,831 gross (payable within 28 days).
• Compensation (hurt and humiliation): $18,000 (payable within 28 days; without deductions).
• Costs: $2,250 (payable within 28 days).

Read the full ERA determination (embedded)

If the embedded PDF does not load on your device, use the button below to open it in a new tab.

Mobile / tablet tip: Some browsers do not display embedded PDFs reliably. Use the "Open" button above.

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