Labour Inspector Ordered to Disclose Key Legal Advice on Gloriavale Case

The Labour Inspector has been mandated to release legal advice related to the Gloriavale community’s employment status, which could have significant implications for its members. A ruling by Chief Judge Christina Inglis determined that the Inspector must disclose information that may clarify whether individuals at Gloriavale are employees or community volunteers.

This decision arose during an employment hearing in November 2023, where it was revealed that the community leaders had been appealing a prior decision classifying their members as employees. The Gloriavale defendants argued that the Labour Inspector’s actions were overdue, stating that the issues in question should have been apparent following investigations in 2017 and 2021.

According to employment law, the Labour Inspector is required to apply for penalties within twelve months of becoming aware of any breaches. On the first day of the hearing, the Labour Inspector’s counsel referred to advice from Crown Law in 2021, which indicated that the workers were not classified as employees. This reference raised questions regarding the Inspector’s authority to act against Gloriavale based on that advice.

The defendants and plaintiffs in the case contended that by citing the Crown Law advice, the Labour Inspector had waived its privilege regarding that information. This claim was contested by the Labour Inspector, leading to a legal debate over the implications of the advice on the case’s timing and the potential penalties involving Gloriavale.

Chief Judge Inglis pointed out that the Labour Inspector seemed to be leveraging the Crown Law advice to justify a delay in proceedings, while simultaneously asserting that the advice was privileged, which prevented necessary scrutiny. She noted that the Labour Inspector had the power to initiate action against Gloriavale as early as 2021 but chose not to pursue it.

“It appears, from counsel’s submission in Court, that the Crown Law advice was a factor influencing that decision,” Judge Inglis stated. She emphasized that this advice is directly tied to the core issue of the Labour Inspector’s delay, which is essential for determining the timeline for legal limitations.

In her decision, Judge Inglis concluded that the privilege associated with the 2021 Crown Law advice had indeed been waived. The Labour Inspector is now required to disclose this information to both the defendants and plaintiffs within five working days. Should the Labour Inspector believe it necessary, there remains the option to appeal this order.

This ruling emerges as a pivotal moment for the Gloriavale community, as the classification of its members could lead to significant changes in their employment rights and community operations. The outcome of this case will likely have broader implications for similar communities navigating the complexities of employment law in New Zealand.