A former Gloriavale resident is "ecstatic" following a ruling that found three leavers from the Christian community are actually classed as employees.
For decades, Gloriavale has relied on child labour to ensure the success of its businesses. But Chief Employment Court Judge Christina Inglis has found three young men who worked there from the age of six were employees, not volunteers.
The ruling has cleared the way for intervention by government agencies and it has ramifications for hundreds of young people still living there.
Former Gloriavale residents Hosea Courage, Levi Courage, and Daniel Pilgrim went to court and won.
"My reaction is I'm mind-blown, just so ecstatic and it's just overwhelming that we're finally being heard," Pilgrim said.
Hosea Courage was denied food and hit with a shovel for not working fast enough as a six-year-old in what was described as a "brutal control regime".
He said the court has verified what he said.
"That Gloriavale was not a nice place to be, it treated its workers poorly and exploited the people in there for its personal gain."
Judge Inglis was unequivocal on that point.
"It is plain that the ready access to child labour constitutes a significant factor in the success of the Gloriavale business model," she said.
Gloriavale claimed children carried out "chores". But Judge Inglis found it all resembled a "classic employment situation" - workers were selected for a job under strict direction of those in charge.
The law is clear - an employee works for reward. While residents got no money, the court found there's still a reward in the form of food and the ability to be part of the community.
"They have got massive industries there, all built on child labour and on free labour with the adults. And that is wrong," said barrister Brian Henry.
Henry led the legal challenge and said the ramifications are huge.
"So their child labour is a) going to cost them money, but also they have to give them proper breaks, they have to work correct hours," he said.
Henry said the decision will change the makeup of Gloriavale's business, providing the responsible government agencies act.
"I don't think you can employ six-year-olds in heavy industry. They've got a whole lot of young kids that will have to stop working and be allowed to be kids."
Liz Gregory, Gloriavale Leavers' Support Trust manager, believes the ruling will have a lasting impact.
"This ruling and the impact of it is going to reverberate through Gloriavale for a long time."
In 2020, when current Gloriavale members spoke to Newshub, a review was ordered of a 2017 Labour Inspectorate finding that workers there were volunteers, and a second report found the same thing. This court ruling means those assessments were wrong.
"They've failed miserably really," Pilgrim said.
Judge Inglis noted the Labour Inspectorate had copies of Gloriavale's internal document called 'What We Believe', showing leaders had absolute power and should not talk to external agencies.
"Loud alarm bells ought, in my view, to have been ringing," she said.
Henry said the Labour Inspectorate "dropped the ball", which is why he issued proceedings against them.
Now that the court's made its decision, the Government's indicated it may intervene at Gloriavale.
"There are very, very concerning claims and findings here and we need to make sure there is a firm response," said Workplace Relations Minister Michael Woods.
Wood said he's going to be meeting with different government agency representatives on Wednesday, indicating that there could be a multi-agency response to the court's ruling.
He said the Labour Inspectorate will need to be involved, but as it relates to the rights of children, it may also involve Oranga Tamariki and the Police.
Crown Law advised the Labour Inspectorate that people at Gloriavale were volunteers, but Woods said the court's ruling "potentially does change the ground".
A spokesperson for the Attorney-General David Parker told Newshub that Crown Law is in the process of digesting and reviewing the decision to determine which agencies need to respond to address the concerns.
