Overview of the Case

Gloriavale is described as a self-sustaining Christian Community with its residents living what might be referred to as a communal lifestyle. It is made up of a Trust, a Partnership, a nominee company, a holding company, and a number of limited liability trading companies to operate a variety of commercial enterprises, including a honey making plant and a dairy farm.

Hosea Courage, Daniel Pilgrim and Levi Courage were born into the Community and carried out work starting from the age of six. All three of them left Gloriavale and sought a declaration that they were employees when performing work for the Community.

The Gloriavale defendants denied that the plaintiffs were employees. They claimed that any work undertaken between the ages of six and 14 was chores or work required by their parents; that work undertaken when they were 15 was part of their schooling; and that work undertaken from 16 years of age was done on a voluntary basis. There was no intention to enter into an employment relationship at any stage.

Ruling

In her  58-page judgement Chief Judge Christina Inglis made declarations that Hosea Courage, Daniel Pilgrim and Levi Courage were employees from the age of six through to when they left the Gloriavale Community.

Read a summarised version of the court judgement on the Daily Vale.

The plaintiffs also claimed that the Labour Inspector breached their statutory duties. This aspect of the claim centred on a report of the Labour Inspector, concluding that people working in Gloriavale were volunteers.

Read the Media Statement the court released.

Impact

If you are an ex-member of Gloriavale and are interested in knowing how this may impact you, the plaintiffs’ lawyer Brian Henry is offering to initially act as an agent for dealings with the Labour Inspectorate.

Please fill in the form on this page and your details will be passed through to Brian Henry’s legal team.

How Did We Get Here? A Detailed Background

• Gloriavale partakes in three documentaries (funded by NZ on Air). A World Apart 2014, Life and Death 2015, A Woman’s Place 2016.
• During these years people started leaving Gloriavale in numbers not seen before. They were upset by the one-sided view of Gloriavale that was shown in these documentaries and a few leavers were interviewed for Sunday, Campbell Live and other print media during April 2015. (https://www.nzherald.co.nz/nz/gloriavale-leaders-close-in-as-members-talk-of-leaving/4SWTFGHTQOHYCNUD5K6QPGZF3I/?c_id=1&objectid=11436686)
• The Police had concerns about what they were hearing and ask the Charities Services to Investigate. Concerns ranged from financial irregularity, enforced marriage, physical and sexual abuse, forced separation of families and a controlling environment.
• After interviewing more than 18 former members the issues widened to include financial practices relating to members’ wages, financial practices set up to facilitate theft/fraud, funds being used for non-charitable purposes. Mismanagement in the form on conflicts of interest management, Coercion to hand over assets to the Trust, those that leave the community do so with no assets, Members of Gloriavale are forced to sign contracts with no informed consent, marriages taking place without consent of both parties, abandonment of members that poses a risk to their well-being, manipulation of members through their belief system, separating family members as a form of punishment, unsafe health and labour practices.
• Charities Services suggested a Joint Agency was required and Police, MSD, Oranga Tamariki, etc were involved to ensure the ongoing care and welfare of the people and especially the children. Charities Services passed some information to the Police to consider allegations of offending.
• Charities Services also requested MBIE (Labour Inspectorate) to look at the issues regarding workplace health and safety, and long working hours. (they were not part of the joint agency)
• Charities Services Investigation report was completed in 2016. It acknowledged the Trust had engaged in patterns of activity that were mentioned in the Act’s definition of serious wrong-doing. Read the report here: https://www.scribd.com/document/344645661/Gloriavale-Charity-Services-Investigation
• However, Charities Services did not give a formal warning to Gloriavale, choosing instead to work with the Trust to become compliant. Under pressure Gloriavale promised to make changes and to them seemed to offer a “high level of cooperation” with the Charities Services. They added three external trustees onto their board. They selected a lawyer, who was known to work for them, a man who owned Mitre Ten and another local businessman.
• Charities Services requested the Labour Inspectorate to look into the allegations of long working hours and health and safety issues.
• In 2017 MBIE (Stu Lumsden) completed a desktop review of the Charities Services interview notes, and did not interview any ex-members. He made the comment in the report “My conclusion, on balance, is that members of the Gloriavale community are not employees. Therefore, whilst some general concerns remain evident, it is recommended that the Labour Inspectorate does not proceed to a full investigation, and that no further action should be taken at this point.” (Read the report here: https://www.dropbox.com/s/1ur5kw51arpqadw/MBIE%20-%20Desktop%20Review%20by%20Stu%20Lumsden%202017.pdf?dl=0)
• The report was buried and no one who left Gloriavale ever knew about this report.
• Over 2017 – 2019, Gloriavale wrote new policies, which leavers followed closely, knowing that Gloriavale had no intention of implanting the changes they promised to the Charities Services. Over the next few years, leavers say things got worse on the ground at Gloriavale (more control than ever). They spoke openly about their concerns and the group that became the Gloriavale Leavers’ Support Trust recorded the complaints and sent them on to Police and Charities Services across this time period.
• In Dec 2019, On behalf of 35 leavers (representing 79 recent leavers), the Gloriavale Leavers’ Support Trust called for a new Charities Investigation in December 2019. https://www.stuff.co.nz/national/122250979/gloriavale-leavers-calling-for-new-investigation-into-community
• Their request was declined in August 2020 – after weighing up a lot of material that had been given to them. By now Operations Minneapolis had begun into sexual offending in the commune. (https://www.stuff.co.nz/national/122624445/charities-services-declines-calls-to-reinvestigate-gloriavale)
• In September 2020 lawyers working for leavers filed a Civil Action against Gloriavale, seeking to remove the Trustees. (https://www.stuff.co.nz/national/122862433/gloriavale-leaver-launches-high-court-civil-proceedings-against-leaders) https://www.gloriavaleleavers.org.nz/articles/statement-of-claim-made-public-for-first-time-as-civil-case-taken-against-gloriavale/
• That same week in Sept two men who were current residents of Gloriavale came out of the bush on the condition of anonymity and spoke to News Hub and spoke about their working conditions and life inside Gloriavale. (https://www.newshub.co.nz/home/new-zealand/2020/09/current-gloriavale-members-sneak-out-to-openly-criticise-leaders.html?fbclid=IwAR1yKBwaTH0gX7SNe0PMhMGJVeJ16rUM33N0_6Y1YtOBN9TgeyuoGvoQqwQ)
• Newshub reporter, Michael Morrah, followed up and uncovered the 2017 MBIE report.
• MP Andrew Little orders a review after seeing the critical MBIE report (https://www.newshub.co.nz/home/new-zealand/2020/10/andrew-little-orders-major-review-into-gloriavale-practices-after-seeing-critical-2017-report.html?fbclid=IwAR13r5skA2rekjQJU9SW–1B3OFy_O-gNEW4FkYry1u09sTv8b7hjjDP9Ng)
• Sept 2020 Worksafe went into Gloriavale but insider said they were warned about the upcoming visit and they made attempts to tidy up their practices and ensure everything looked good for the inspectors. (https://www.newshub.co.nz/home/new-zealand/2020/09/worksafe-investigating-gloriavale-over-current-members-claims-of-punishing-work-hours.html?fbclid=IwAR0BtcHe1D90aLz0ZAB_6nET5r0_MYKa2AW641MLedXkUJcD-bQev4xjmn0)
• October 2020 MBIE says it will not open an investigation into Gloriavale, standing by its claims that the workers were not employees and they have no jurisdiction. They invite ex-mebers to come forward to help them reassess. (https://www.stuff.co.nz/national/122948819/no-action-to-be-taken-against-gloriavale-by-labour-inspectorate-as-workers-deemed-volunteers?fbclid=IwAR3Ykc35ndFK4aQtRUm2PCU14QffEK5PPSAgaCtGsBWQFEqyqR6BssAfgwQ)
• The Gloriavale Leavers’ Support Trust, along with ex-members and the media called for a full investigation into Gloriavale’s workplace practices and allegations of exploitation.
• MBIE opens a “Pre-investigation” towards the end of 2020. This involved interviews with around 13 leavers. They also interviewed people inside Gloriavale, who were told by leadership to tell the inspectors that they were volunteers and not employees. The issue sat with Crown Law for many months.
• After 9 months, on 23 July 2021, MBIE came back with a decision. They determined that on the balance of probabilities if they were to take Gloriavale to court over this issue, they would not have a 100% chance of winning, and so they declined to proceed to a full investigation. MBIE remained convinced that the people at Gloriavale were not employees and because of this they had no jurisdiction. https://www.employment.govt.nz/about/news-and-updates/labour-inspectorate-concludes-inquiry-gloriavale/
• By early August the leavers’ legal team, Brian Henry, Dennis Gates and Steve Patterson requested the case be passed to them.
• The Gloriavale Leavers’ Support Trust advocated for the leavers and insisted MBIE was wrong in its analysis and that they had all the classic signs of exploited employees.
• The leavers were upset and made noise in the media. https://www.rnz.co.nz/news/national/427724/gloriavale-leavers-petition-government-plan-to-protest?fbclid=IwAR1l7J1TQRtMPaxEEGKtK8IORW5onFSpXLhVUhxD4O1b4vsyKWZtuhkRX_A
• Ex-members and supporters protest outside the Leaders Debate: https://www.stuff.co.nz/national/122995748/gloriavale-leavers-launch-petition-and-protests-to-get-government-inquiry?fbclid=IwAR2_d-AKhn8K6tS4lAFtr0HezZT1J8D96uMMMZEsnrIyO_svpc1-BYmyzHw
• By Sept 2020 the legal team filed in the Employment Court for an urgent hearing, which was granted to them. They requested the court find three young ex-Gloriavale men as employees as employees and not volunteers. The legal team decided to bring the Attorney General into the case as Defendant #1 because they failed to protect the interests of the alleged exploited workers, and Gloriavale entities and leadership team were Defendants #2. (https://www.nzherald.co.nz/nz/workers-or-volunteers-gloriavale-leavers-take-employment-fight-to-court/6DU3LWLYHZOEZPD7L654ZBPKZI/)
• 21 Feb – 4 March 2022 – Court hearing runs AVL link (due to Covid)
• During March 2022, before the Boys’ case was complete, the leavers’ legal team filed a new set of proceedings against the Attorney General and Gloriavale, stating the young ladies who worked at Gloriavale were employees and not volunteers. This case was called Pilgrim v Attorney General. There are six plaintiffs. The case will be heard later this year. https://www.nzherald.co.nz/nz/employment-court-grants-another-group-of-ex-gloriavale-members-urgent-hearing/XLC6X53UHQUAV5DOVW3OAAWDGE/
• Gloriavale Leavers’ Support Trust calls for a reinvestigation by the Charities Services on the basis of evidence given in the court. This is declined. They say they will wait for the judgement.
• Judge ruled on 10 May 2022 that the three plaintiffs were employees from the age of six years old. They are entitled to compensation. (Read the Judgement Here: https://www.employmentcourt.govt.nz/assets/Documents/Decisions/2022-NZEmpC-77-Courage-Ors-v-Attorney-General-Ors-Judgment.pdf)
  https://www.nzherald.co.nz/nz/employment-court-rules-gloriavale-members-were-employees-from-age-6-undertook-laborious-often-dangerous-work-not-chores/Y765MNKEGTL6QD74BHEOD34OCM/
• There are two more stages of the case yet to be determined. Stage Two: The judge needs to state who the employers were. Stage Two: The Govt will be in the stand answering why they failed to recognise the employment status of the plaintiffs.
• MBIE recognises that the court ruling applies not just to the three plaintiffs, but to any other young men in s similar situation, either those who have left Gloriavale, or those who still remain.
• Charities Services finally announces an investigation into Gloriavale after the ruling of Chief Judge Inglis in the Courage v Attorney General Employment Court case in May 2022. https://www.stuff.co.nz/national/128606746/charities-services-open-new-investigation-into-gloriavales-charitable-status-following-employment-court-decision
• Gloriavale chooses not to appeal the Employment Court ruling.
• 3 June 2022 – The Attorney General makes an application to the court to share court documents with Government agencies. The Application stated “The judgment identified a range of issues which may be of interest to these agencies and which the Attorney-General considers ought appropriately to be drawn to their attention to facilitate further investigation.” The agencies which the Attorney-General wishes to provide the above documents to are: New Zealand Police, Ministry for Children, WorkSafe, Ministry of Social Development, Charities Service, Inland Revenue, Ministry of Health,, Ministry of Education, The Education Review Office, and New Zealand Qualifications Association.
• https://www.employmentcourt.govt.nz/assets/Documents/Decisions/2022-NZEmpC-98-Courage-Ors-v-A-G-Ors-Interlocutory-Judgment-No-12.pdf
• June/July/Aug 2022 – Various businesses choose to stop conducting business with Gloriavale under mounting pressure – in particular those associated with the Meal Plant and the Dairy industry. https://www.stuff.co.nz/business/128729583/gloriavale-factory-loses-meat-company-contract-and-a-workers-third-degree-burns-spark-a-worksafe-investigation
  https://www.stuff.co.nz/business/128627522/westland-dairy-could-cancel-gloriavales-milk-supply-contract-following-evidence-of-child-labour-and-worker-exploitation
• Gloriavale heads to court to seek an application for an injunction which will force Westland Milk to pick up their milk until the case can be heard. In court they claim that no underage workers were used on farms since 2017 (a patently false statement).
  https://www.nzherald.co.nz/nz/gloriavale-milk-row-no-child-labour-used-on-farms-for-at-least-five-years-court-hears/O3W7ZCEXV5HSCDXVJGI3HICYPA/

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