Charities Services open new investigation into Gloriavale's charitable status following Employment Court decision

Wednesday, 11 May 2022

That’s the question being posed in the Employment Court.

The Government’s Charities Services have opened a new investigation into the charitable status of West Coast Christian community Gloriavale.

Charities Services general manager Mike Stone said the investigation would look at whether Gloriavale, as a registered charity, had met its obligations under the Charities Act 2005.

The decision comes as Chief Judge Christina Inglis’ judgment, released on Tuesday, found three former members were employees when they worked in the community’s commercial businesses from the age of 6 – but that the work they did was strictly controlled.

Charities Service declined to investigate in 2020 after 35 Gloriavale leavers sent a letter to the agency setting out a host of concerns, including alleged physical, emotional and spiritual abuse.

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Women who previously worked at Gloriavale have also taken yet to be heard Employment Court action. (file photo)

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Gloriavale kept its charitable status despite a 2016 Charities Services investigation which found the leaders may have acted in a manner that constituted serious wrongdoing under the Charities Act, particularly when it came to the handling of physical and sexual assault allegations and members wanting to leave the community.

However, the agency decided it was in the public interest for the trust to remain on the Charities Register, so that it could help the leaders improve the governance and management of its charitable trust, called the Christian Church Community Trust.

According to its 2021 annual return to Charities Services, the trust had a profit of almost $2.8 million and assets of $41m. It owns the communal living facilities, operates a private school and three early childcare centres, along with 11 companies including Air West Coast Ltd, dairy, deer and sheep farms, midwifery services, a honey company, and an offal plant.

The ruling by Judge Christina Inglis is expected to pave the way for others to come forward with similar claims about work.

It does not pay its workers as employees and does not pay tax. The return says it has 40 volunteers working 1200 hours a year.

Stone said Charities Services was carefully considering the Employment Court decision.

“Our initial assessment of the judgment raises concerns across a range of matters of interest to various government agencies,” he said.

Registration as a charity brings a range of benefits, including tax exemptions and donee status. To remain registered, charities must advance charitable purpose, report annually, and not engage in conduct that constitutes serious wrongdoing, as defined in the Act.

Should a registered charity be found to have engaged in serious wrongdoing, they may be de-registered by the independent Charities Registration Board, he said.

Meanwhile, Gloriavale leaders say they are bringing positive change to the community in light of the damning Employment Court decision.

In a statement, the leaders said they were reviewing the declaration issued by the Employment Court.

Minister for Workplace Relations and Safety Michael Wood says very concerning issues were raised about Gloriavale.

”The leaders are committed to bringing positive change to the community for the benefit of those that live there,” it said.

“They will carefully review the findings of the Employment Court and consider what steps they will take in response to it.”

Minister for Workplace Relations and Safety Michael Wood said he did not believe the Labour Inspectorate failed when it deemed workers at the secretive West Coast community were volunteers, instead pointing the finger at advice received from Crown Law on the issue, which up to now had said the people in Gloriavale were not employees.

In her ruling, Judge Inglis was acutely critical of several government agencies, including the Education Review Office and the Labour Inspectorate, saying “loud alarm bells ought … to have been ringing”.

Wood met with officials from WorkSafe, the Labour Inspectorate and Crown Law on Wednesday to get a full analysis of the findings.

He had asked for further advice to come back within a week about steps the Government could take following the “legal clarity” provided by the court.

“We need to go through the ruling and have a proper response across agencies. There are very, very concerning claims and findings here, and we need to make sure there is a firm response.”

The Labour Inspectorate said it would work with the three plaintiffs to take forward enforcement action and calculate arrears owed.

Plaintiff Levi Courage said he was pleased Wood had said Government agencies would work together to improve life for people in Gloriavale.

“One agency hasn't done enough. There has not been enough impact. If they are altogether it will have a vaster impact,” he said.

He was sceptical of the leaders’ pledge to make changes.

“They’ve said that in the past, for my whole life, and they haven't done anything, and it doesn’t strike anything in my brain that they are going to do something now,” he said.

“They will be more likely to hide stuff than do something about it. It’s easier for them to do that.”

In her ruling, Judge Inglis said the children at the community worked regularly and for long hours, primarily for the benefit of Gloriavale's commercial operations.

In return, they received the necessities of life and the ability to remain in the community – but the work children did was “subject to strict control”, strenuous, difficult and sometimes dangerous.

Parents had little influence, and no final say, over where, when, and for how long their children worked, the judge said.