Former gym worker wins $32k in employment case

A gym franchisor has been ordered to pay a former employee over $32,000 in unpaid wages and compensation. Photo / 123RF

A gym franchiser has been ordered to pay a former employee over $32,000 in unpaid wages and compensation.

The Auckland Employment Relations Authority (ERA) found that Fiorella Granados was constructively dismissed from her job as a sales, marketing and social media consultant for Figurex Franchising Limited (FFL), which primarily operates gym companies.

The ERA was told that Granados was employed in accordance with the conditions of a holiday working visa but that virtually from the start of her commencing work her wages were late or not paid at all.

FFL did not dispute that but claimed Granados' employer was actually Configure Express Limited, now in liquidation, as FFL was formerly known.

FFL's sole director, Wendy Mackay, and former director Greg Peters are a married couple.

Granados said she had threatened to resign on a number of occasions but did not as her work visa only allowed her to work at FFL.

She had also trusted Peters' word that she would receive some but not all of the wages she was owed.

In October last year she booked an air ticket to her native Chile based on this assurance, however, no payment was made.

She then re-booked in December after Peters said she would receive the wages and a further $2000 towards the cost of the flights, according to the ERA's decision.

Upon her return to New Zealand she did not receive anything and resigned shortly thereafter, finishing work in June.

The ERA agreed that Granados had been employed by FFL and not Configure Express, determining that her resignation had amounted to a constructive dismissal.

"I find that there was a breach of duty on the part of FFL and that this was a fundamental and serious breach," said ERA member Eleanor Robinson.

She acknowledged that FFL was facing serious financial hurdles, but it was still registered with the Companies Office and there was no evidence it could not pay its debts.

FFL was ordered to pay Granados $7777 unpaid wages, $622 holiday pay, $233 in KiwiSaver contributions, $10,000 compensation for hurt and humiliation and a further $13,400 for the period she was unemployed after her resignation.

No-one from FFL could be reached for comment.