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Newspaper boss ordered to pay $193,000 to three employees

Author
Matthew Theunissen,
Publish Date
Wed, 1 Nov 2017, 12:58pm
(Photo / Stock)
(Photo / Stock)

Newspaper boss ordered to pay $193,000 to three employees

Author
Matthew Theunissen,
Publish Date
Wed, 1 Nov 2017, 12:58pm

A newspaper publisher that a made a worker pay $50,000 to get her job has been ordered to pay the money back - as well as another $93,000 in lost wages and penalties.

The Employment Relations Authority (ERA) heard that Zhishen (Oscar) Cui, owner and managing director of Hamilton-based Educasia Media, initially declined to employ Huizi Shu at his newspaper, Asia Pacific Times.

Cui subsequently agreed to offer her a job on the basis that she pay him a $50,000 "premium".

On two occasions he accompanied her to the bank as she withdrew money from her account, handing him $30,000 on August 25, 2015, and $20,000 a month later.

Shu relied on funds transferred from her parents in China to pay the money.

She worked for the company for just under a year before resigning and asking for Cui for a refund - a meeting that was recorded without Cui's knowledge.

According to the ERA, which was provided with a translated copy of the transcript, Cui refused the refund, instead offering $17,000 if she was able to find another employee who would pay the premium.

"Mr Cui told Ms Shu that the company had three shareholders who had each benefited from the $50,000 payment in equal shares," the decision said.

The ERA said this was untrue as a review of the Companies Office register showed there were only two shareholders at the time Shu paid the $50,000 - and that by January 18, 2016, Cui was the sole director of Educasia.

Shu subsequently returned to China where she is now residing.

"I have no hesitation in finding Ms Shu was in a vulnerable position and Mr Cui took advantage of her," said ERA member Vicki Campbell.

Educasia was found to be in breach of the Wages Protection Act, which forbids employers from seeking any premium.

The company was ordered to pay the Labour Inspector $50,000 plus interest "for the use of Ms Shu", the ERA decision says.

It was ordered to pay a further $24,2010 for Shu's unpaid wages, $2057 for unpaid holiday pay and $1500 for public holidays not worked.

The ERA also heard that another woman, Wei Xu, was not paid for over a month while she received "training" at the paper, working from 9.30am to 5pm each day doing graphic design work.

The ERA found that she had in fact been working without wages and ordered Educasia to pay the Labour Inspectorate $5268 for the use of Xu.

Another employee, Jiawei Hou, worked as an editor from April 2 to May 15, 2017, without pay.

Educasia was ordered to pay the Labour Inspectorate $4116 plus interest for this breach.

Taking into account that Educasia was not in a strong financial position, the ERA imposed a further penalty of $54,000, part of which should be paid to the affected employees.

Educasia was ordered to pay the Labour Inspectorate a further $2322 for costs incurred.

"The failure to pay employees the minimum wage for all hours worked is a serious matter," Campbell said. "It deprives the employees of income on an ongoing basis and allows the employer to profit from its own breach."

Contact details could not be found for Cui or Educasia.

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