Labour Inspector Ordered to Release Advice on Gloriavale Case

A New Zealand labour dispute has escalated as the Labour Inspector has been ordered to disclose legal advice regarding the employment status of workers at Gloriavale, a controversial religious community. The ruling, made by Chief Judge Christina Inglis, follows an appeal by Gloriavale leaders challenging a finding that its members were classified as employees rather than community volunteers.

The legal battle centers on allegations that the Labour Inspector’s actions were delayed. The defence argues that the Inspector should have been aware of potential breaches stemming from investigations conducted in 2017 and 2021. According to New Zealand law, the Labour Inspector is required to apply for penalties within 12 months of becoming aware of a breach.

During the initial day of hearings in November 2023, counsel for the Labour Inspector referred to advice from Crown Law dating back to 2021, which suggested that the workers in question were not employees. This reference raised significant concerns, as it indicated that the Labour Inspector may have delayed action based on this advice. The Gloriavale defendants, along with the plaintiffs, contend that by citing the Crown Law advice, the Labour Inspector effectively waived any privilege associated with it, thus necessitating its disclosure.

Chief Judge Inglis noted that the Labour Inspector appeared to be using the Crown Law advice to justify its inaction while simultaneously claiming that the advice was privileged. This, she argued, prevented a thorough examination of the rationale behind the delay. The judge stated, “It appears, from counsel’s submission in Court, that the Crown Law advice was a factor influencing that decision. Consequently, it is linked to the central issue of the Labour Inspector’s delay and whether it can be justified for the purposes of resolving the question as to when the clock started to tick for limitation purposes.”

In her ruling, Judge Inglis determined that the privilege associated with the 2021 Crown Law advice had been waived. As a result, the Labour Inspector is required to disclose this information to both the defendants and the plaintiffs involved in the Gloriavale case within five working days.

The Labour Inspector has the option to appeal this ruling if deemed necessary, adding another layer to this already complex dispute. As the case unfolds, it continues to draw attention to the legal and ethical implications surrounding employment classifications in such unique communities.

The outcome of this case may significantly impact not only the members of Gloriavale but also the broader discussion regarding labour rights and protections within similar organizations across New Zealand.