Christchurch business owner banned from employing staff

The Employment Court has come down hard on the business owner after he persistently breached NZ's employment law.

The former owner of popular Christchurch buffet restaurant Sequoia 88 and the Watershed Bar and Restaurant, has been banned from hiring staff for three years.

Gordon Freeman is the first person to face a banning order by the Employment Court after intentionally and persistently beaching employment law.

Despite being fined previously by the Employment Relations Authority (ERA), Freeman, the sol director and shareholder of Victoria 88 Ltd, continued to include an illegal clause in his employment agreements stating that staff would lose their holiday pay if they have less than six weeks' notice when resigning.

"Mr Freeman cynically abused the trust placed in employers, and disregarded the basic rules put in place to ensure everyone in the workplace is getting a fair deal," said Labour Inspectorate national manager Stu Lumsden.

Lumsden said the ban should serve as a clear warning to any other employers who aren't taking their obligations seriously.

"This case demonstrates the Inspectorate's commitment to having employers removed from the labour market who seriously fail to meet their obligations, and are unfit to be employers," he said.

It was the first time the employment court had imposed a ban since the sanction was introduce in 2016 to strengthen the enforcement of minimum employment standards, Lumsden said.

Freeman and his businesses also have to pay $20,000 in penalties, of which $7845 is to be paid to 23 affected employees. Half of those penalties, including the arrears, are to be paid by Freeman personally.

Freeman has sold the Watershed Bar and Restaurant and althoughthe current owners have kept the name, they have no relationship to him.

The inspectorate first took action against Freeman's former company G L Freeman Ltd in 2015, when employees were being forced to take annual leave by being rostered on for a day off every week without consultation, and without applying for it.

After the inspectorate intervened, the company reinstated the leave, but did not pay employees upon termination, resulting in arrears of $7122 to four employees, and a $15,000 penalty to the company.

A person who breaches a banning order faces a fine or up to $200,000 or three years in jail. Anyone concerned about their employment situation, or the situation of someone they know, should call 0800 20 90 20 where they can report their concerns in a safe environment.