In a landmark decision by the Employment Relations Authority (ERA), seven migrant nail technicians from Vietnam, employed by Amy’s Hair and Beauty in central Wellington, have been awarded over $230,000 in compensation. This ruling comes after they were found to have been exploited by the salon’s owner, Ngoc Tuyet Uyen Huynh, suffering from lost wages, unjustified dismissal, and humiliation.

The Journey to Wellington

The women were brought to New Zealand from Vietnam at various times throughout 2023 with the promise of work as nail technicians at Amy’s Hair and Beauty. Their journey was filled with hope for a better life, but what awaited them was far from what was promised.

Exploitation Uncovered

Upon arrival, the ERA found that these women were coerced into performing tasks outside their employment agreements, such as massages, waxing, and hair washing. Ngoc Tuyet Uyen Huynh claimed she had provided an updated agreement covering these duties, but the workers denied ever seeing this document, highlighting a significant breach of trust and good faith.

Underpayment and Overwork

According to the ERA determination files, the initial pay was a mere $200 per week, which later increased to $400, far below the agreed rate of $29.66 per hour for a 40-hour workweek. Some workers reported working daily with minimal days off and no proper breaks, conditions that starkly contrasted with New Zealand’s employment standards.

Unjustified Dismissal

The situation escalated when the women sought advice on their rights from a Vietnamese advocate active on social media. Following this, Huynh dismissed them in late December 2023. The ERA member Claire English noted that the women were asking for basic rights like having their wages paid into a bank account with tax deductions, set work hours, and the right to refuse inappropriate client requests.

During a staff meeting on 17 December, Huynh accused the women of being against her and reporting her, instructing them to go home and await an email. Some received termination notices that day, while others were notified later. Huynh justified the dismissals citing work issues and claimed the women were under a 90-day trial period, which would prevent them from making claims.

ERA’s Ruling

The ERA, however, ruled against Huynh on several grounds. Thi Kim Chung Nguyen, one of the workers, was dismissed after 100 days, well past the 90-day trial period. Moreover, the ERA found that the trial period was invalid because:

• The workers were not paid the required one-week notice.
• The salon employed more than 19 employees, making the 90-day trial period inapplicable.
• The employment agreements were not signed by the workers themselves but by an agent, rendering the clause unenforceable.

Each woman was awarded compensation ranging from $27,000 to $37,000 for the various grievances including unjustified disadvantage, dismissal, and breaches of good faith. This decision underscores the importance of fair treatment and adherence to employment laws.

The Bigger Picture

This case sheds light on the broader issue of migrant worker exploitation in New Zealand. According to a study by the Ministry of Business, Innovation and Employment (MBIE), migrant workers are often at higher risk of exploitation due to language barriers, unfamiliarity with local laws, and dependency on their employers for visas. The ERA’s decision in this case could set a precedent, encouraging more migrant workers to come forward with their grievances.

Community and Legal Response

The Wellington community and legal experts have reacted with support for the ruling. Local advocacy groups have praised the ERA for its thorough investigation and fair judgment. Legal experts suggest this case might prompt stricter enforcement of employment laws concerning migrant workers.

Looking Forward

While one application was dismissed due to the applicant’s failure to participate, the successful claims highlight the need for vigilance in protecting migrant workers’ rights. The compensation awarded is not just financial but also a recognition of the dignity and rights of these workers.

Note: This article by One Network Wellington Live aims to inform and engage the Wellington community on issues of workplace rights and justice, particularly for migrant workers. We stand in solidarity with all workers seeking fair treatment and encourage anyone with similar experiences to seek legal advice.