The authority heard Rudd then kicked a rubbish tin and left the restaurant, slamming the door. Rudd did not dispute this version of events.
"Mr Rudd's behaviour on July 18 was scary and intimidating," authority member Tania Tetitaha said. "It directly affected these applicants' physical and mental health, well-being and mana within their community."
Two days later, Rudd's accountant, Andrew Walton, apologised on behalf of the musician.
At a later meeting, described as tense, the workers were told Rudd wanted the restaurant closed over winter. Soon after, the Kiwas and Clark were told their jobs were terminated. The trio were warned any breach of "confidentiality provisions" would be treated seriously.
Tetitaha said Clark and Alice Kiwa were out of work for at least three months. Janelle Kiwa lost six weeks' wages and was effectively homeless. The authority said she and Clark were also victims of false accusations about thefts from Phil's Place. Clark had to leave town to get a job.
Rudd apologised personally at the hearing on February 25.
For loss of income, Phil's Place must pay Alice Kiwa $4,872, Janelle Kiwa $4,536 and Clark $9,692. It must also pay the three applicants $15,000 each for distress and $8,500 in costs.
Phil's Place has 28 days to appeal against the decision.