Newspaper boss made employee pay $50k for a job: ERA

A Hamilton-based newspaper boss made a prospective employee pay $50,000 before he would give her a job. Photo / 123RF

A newspaper publisher that made a worker pay $50,000 to get her job has been ordered to pay back the money - 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 her a job if she paid him a $50,000 "premium".

He twice accompanied her to the bank as she withdrew money, handing him $30,000 on August 25, 2015, and $20,000 a month later.

Her parents in China paid the money.

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

According to the ERA, which was given a translated copy of the transcript, Cui refused the refund, instead offering $17,000 if Shu 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 only two shareholders when 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 a 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 more than a month while she received "training" at the paper, working from 9.30am to 5pm each day doing graphic design work.

The ERA found she had been working without wages and ordered Educasia to pay the Labour Inspectorate $5268 for 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.