The sole director of a liquidated Taupo restaurant has been ordered to pay a former employee over $56,0000 in wages arrears and penalties by the Employment Relations Authority.
Authority member Shane Kinley found that New Zealand LJ Food Express Taupo Ltd, trading as No 1 China Restaurant, had failed to pay the employee for annual holiday pay when he stopped working for the restaurant, while public holiday entitlements had not been provided. The employee was also not paid the minimum wage.
Xian Zeng, the owner of the company, was found to be a person involved in the breaches and liable to pay arrears.
Following a complaint, the Labour Inspectorate investigated and found, among other breaches in minimum employment standards, that the employee worked around 52.5 hours per week but was only paid for 40 hours and worked on 23 public holidays for which he was not paid correct entitlements. The Inspectorate also found that the employee did not receive payment for annual holidays when he left his employment.
Kinley ordered Zeng to pay the employee $40,421 in wages arrears and a penalty of $12,000, $3,000 of which is to be paid to the employee.
In addition, Zeng was ordered to pay costs of $2,250 and disbursements of $1,671.20 as well as interest on the total amount until it has been paid in full.
The total amount before interest that Zeng needs to pay is $56,342.44.
New Zealand Li Food Express Taupo Limited went into liquidation in November 2022, and ss the liquidators did not allow the Labour Inspectorate to continue its claims against the restaurant , the Inspectorate pursued Zeng in his capacity as the sole director and shareholder as a person involved in the breaches.
Simon Humphries, Head of the Labour Inspectorate, said owners of businesses where vulnerable workers have been exploited should not expect to escape sanctions even if the business is no longer operating.