The Terrys told the authority in their absence the cafe became a party venue.
At the end of the first week of their holiday, Ms Larson said Mr Ivos invited about seven people to the cafe to celebrate a successful first week.
"In the middle of the time we were having drinks, Kris told everyone that the takings were in the bedside table drawer,'' she told the ERA.
"I thought it was a highly strange and stupid thing to bring up, even around friends.'' The following day the money was missing.
Mr Ivos told the Terrys he thought the money had been taken by Ms Larson or another person who was at the celebration.
The Terrys closed the cafe for the last week they were away.
When they returned, Mrs Terry wrote a message on a large blackboard outside the business that said "Andrea Larsen is a liar and a thief''. She repeated the claim on her Facebook page.
Ms Larsen claims she was both defamed and publicly humiliated and in those circumstances she could not return to work for the Terrys.
Mrs Terry said she wrote the statement ``out of frustration'', and related to an incident where she claims Ms Larson undercharged a friend for some food and drink earlier in the month. She claims that Ms Larson said at the time said she would pay the difference.
ERA member Michael Loftus said the Terrys accepted there was no evidence Ms Larson stole money. "They simply have no idea who stole it.''
The public accusation "essentially defamed Ms Larson'' and to try to justify the message was inappropriate, he said.
Mr Loftus found Ms Larson had been unfairly blamed and unjustifiably dismissed, and was deserving of compensation.