Full Breakdown
Auckland Nail Salon Owners Ordered to Repay Wage Arrears
3/28/2026, 8:18:22 PM
Investigation and Findings
In a significant ruling by the Employment Court, Auckland nail salon owners Dao and Viet Hung Nguyen have been ordered to repay a total of $190,769.57 in wage arrears to two former employees. The case stems from complaints made to the Labour Inspector three years prior, which initiated an investigation into the companies' wage practices between May 30, 2023, and April 9, 2024. The investigation revealed multiple violations of the Minimum Wage Act, the Holidays Act, and the Wages Protection Act. The Labour Inspector estimated that the employees were owed over $205,000 in unpaid wages.
The investigation included witness interviews, analysis of wage and time records, and examination of text messages and work group chats. Following the Labour Inspector's findings, the companies were placed into voluntary liquidation by Dao. Subsequently, all four nail salons were sold, raising concerns about the legitimacy of the transactions. Judge Kathryn Beck noted that the businesses appeared to have been sold for less than their actual value, potentially to family or friends, while the original owners retained control through a different legal entity.
Financial Implications and Legal Proceedings
The financial situation of the companies was dire, with over $1 million owed to Inland Revenue in unpaid taxes. During mediation related to the court proceedings, the companies sold five vehicles, further complicating the financial landscape. Judge Beck expressed concern over the sale of assets, stating that it indicated a risk of the owners reorganizing their affairs to evade financial obligations. As a result, a freezing order was issued to prevent further asset sales, which remains in effect.
Court Ruling and Payment Plan
In a recent decision by Employment Court Chief Judge Christina Inglis, Dao and Viet Hung Nguyen were found jointly liable for the wage arrears. The ruling stipulated that if they made a payment of $60,000 to the Ministry of Business, Innovation and Employment (MBIE) trust account by March 18, the Labour Inspector would withdraw claims against Duong Alex Nguyen, another party involved in the case. The remaining balance of $130,769.57 is to be repaid in 18 monthly installments of $7,264.97, commencing on April 13.
Criticism and Concerns
Critics have raised concerns about the handling of the case, particularly regarding the potential for asset concealment by the owners. The Labour Inspectorate has refrained from commenting further as the matter is still before the court, with additional hearings scheduled for mid-April.
Verbatim Quotes
- “Further, the applicant says the circumstances of the sale of the four businesses are of considerable concern.” — Judge Kathryn Beck
- “The applicant submits that the respondents’ omission to advise her of their intention to sell the four businesses and five vehicles demonstrates a real risk that the respondents are reorganising their affairs in a manner that could place their assets out of reach should judgment be issued against them,” — Judge Kathryn Beck
This case highlights ongoing issues related to wage compliance in New Zealand and the complexities involved in enforcing labor laws against business owners.
