Employer leaves behind staff who kept company running without pay
A company director who "abandoned" her firm in New Zealand has been ordered by the Employment Relations Authority (ERA) to pay her employee's unpaid wages.
Zibo Liu, a Chinese national, is the sole director and shareholder of local tour operator Southern Lakes Sightseeing Tourism Limited.
Liu employed Franceso Garino Canina from May 2019 as a service manager in Queenstown, where he was paid $26 an hour to arrange vehicle and safety equipment maintenance and cover all client needs.
Canina, who was paid a fixed income per week for 40 hours, recalled that his pay was erratic before he eventually stopped receiving his wages in July 2021, but he continued operating the business without contact with Liu until the end of February 2022.
According to Canina, Liu assured him via email in October 2021 that she was sorting his payroll issues and proposed to "close till December." He followed it up with Liu a month after but failed to receive any response.
The service manager told the ERA that the business was hit by COVID-19 and the lack of international tourists. According to him, he managed by living on his savings and looking for alternative contract work.
Canina raised the matter to the ERA claiming for wage arrears, outstanding holiday pay, and interests.
Liu did not respond to the ERA's requests, but the authority is under the belief that she is aware of the current situation.
The ERA took the side of Canina and said Liu "abandoned her responsibilities to wind up the business and resolve employment issues with Mr. Canina."
"Mr. Canina impressed as being patient and honourable person who despite being ill-used by his employer sought to maintain the business and its assets whilst he was not being rewarded. Given he was at the time seeking to obtain residency he was also in a vulnerable position and suffered significant distress," ERA member David Beck said in his decision.
According to Beck, Canina was not afforded respect nor dignity when Liu "simply abandoned her responsibilities as the company director and sole shareholder."
Southern Lakes Sightseeing is now ordered to pay Canina wage arrears and lost wages of 26 weeks in the sum of $27,040 gross.
The operator also owed Canina holiday pay worth $2,163, $15,000 compensation, and legal costs of $4,000.
