The director of a liquidated Taupō restaurant has been ordered to pay a former employee more than $40,000 in wages arrears after he failed to pay minimum wage, proper public holiday entitlements or his annual leave when he left the restaurant.
New Zealand LJ Food Express Taupo Limited — trading as No 1 China Restaurant — was owned solely by Xian Zeng before it went into liquidation in November 2022.
An investigation by the Labour Inspectorate following a complaint found, among other breaches, the employee worked around 52.5 hours a week but was paid for only 40 hours and worked on 23 public holidays without being paid correct entitlements.
It was also found the employee was not paid out his annual leave when he left his employment.
The employee worked at the restaurant from March 2019 to May 2021.
Employment Relations Authority member Shane Kinley ordered Zeng to pay the employee $40,421 in wages arrears and a penalty of $12,000, $3000 of which is to be paid to the employee.
Zeng was also ordered to pay costs of $2250 and disbursements of $1671 as well as interest on the total amount until it has been paid in full.
Restaurant liquidators declined Labour Inspectorate claims against the restaurant — so it pursued Zeng in his capacity as sole director and shareholder as a person involved in the breaches.
Inspectorate head Simon Humphries said owners of businesses where vulnerable workers have been exploited shouldn't expect to escape sanction if the business was no longer operating.
"In this case, the employer knowingly paid the employee less than the minimum wage for a sustained period, while there were also several other breaches in minimum employment standards which impacted the employee.
"While we prefer to support employers to ensure they comply with employment law, the Inspectorate will not hesitate to take enforcement action against those who take advantage of vulnerable workers."
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