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The Employment Relations Authority has ordered 4S Hospitality Ltd to pay $24,000 in penalties, and $16,000 in arrears and interest to the complainant, for multiple breaches of employment standards when the woman worked at the Tarbert St bar, restaurant and hotel between June 2019 and February 2020.
In the decision, authority member Philip Cheyne said although Gurvinder Singh Sidhu was the company’s sole shareholder and director at the time, the Labour Inspectorate’s investigation found his cousin, and company “supervisor/consultant” Kuljinder Singh Sidhu, was effectively running the business.
The investigation was launched after the woman complained to the Ministry of Business, Innovation and Employment about a month after her employment ended.
It found the company failed to keep proper wage and time records for her, underpaid her by about $11,000 by breaching the minimum wage rate, and committed several breaches of the Holidays Act, including failing to pay her correctly for working on public holidays.
Mr Cheyne said Gurvinder Singh Sidhu and the hotel’s manager, Amardeep Singh, were also alleged to be responsible for the breaches.
The trio attended only one of four scheduled investigation meetings last year, but provided written evidence to the authority denying the breaches.
Gurvinder Singh Sidhu and Kuljinder Singh Sidhu agreed the latter played the greater role in running the business and managing staff.
Kuljinder Singh Sidhu employed the complainant, and knew the company was incorrectly recording her work hours, failing to pay her for all the time she was working and failing to comply with Holidays Act provisions.
He effectively “ran the business”, travelling to the Central Otago town once or twice a month and picking up the takings.
He was therefore liable for penalties of $12,000.
As well as the arrears, the complainant will receive 50% of the total penalties paid of $36,000.
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