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The recent decision of the Employment Relations Authority in Wei v Lanquan Ltd highlights the risks of informal employment relationships, such as those entered into with friends or family.
Ms Wei, a Chinese national, brought claims against her former employer Lanquan Limited, as well as its sole director Ms Chen and her husband Mr Lin. The employment relationship was rooted in familial ties, with the couple having helped Ms Wei and her husband immigrate to New Zealand, offering them employment at their “$2 Plus” store.
Despite good intentions, the employment relationship quickly soured. Ms Wei worked just two short stints at Lanquan, for three days in 2023 and 28 days in 2024.
Ms Wei’s initial period of employment in 2023 ended when Ms Chen told her there was insufficient work for her to do. She was not paid for this period, and when she was unable to find alternative work, returned to China in December 2023. Following discussions between family in China, it was agreed that Ms Wei would return to New Zealand and work at Lanquan for 25 hours per week. However, upon Ms Wei’s return, she was only rostered for 24 hours over a different schedule than agreed. Ms Chen did not consult with Ms Wei before reducing her...
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