As Mark Mana had not engaged with the ERA process, he had no idea he had been ordered to pay almost $28k by the ERA until contacted by Open Justice. Photo / Tom Dillane
As Mark Mana had not engaged with the ERA process, he had no idea he had been ordered to pay almost $28k by the ERA until contacted by Open Justice. Photo / Tom Dillane
An Auckland redecorator's decision to withhold a new team member's wages has proved costly, after the employer was ordered to pay almost $28,000 in compensation and fines.
But the employer at the centre of the complaint found out about the hefty fine only after being contacted by Open Justice becausehe had consistently failed to engage with the Employment Relations Authority during its investigation.
Mark Mana, an Auckland-based redecorator, employed experienced painter Dre Taylor in December 2020 after Taylor posted on social media asking if any painting work was available in the city.
Mana owns Hibiscus Painters and Decorators, but there is no record of the business, nor Mark Mana as a company director, listed on the Companies Register.
The employment arrangement was negotiated solely over social media, with the two agreeing Taylor would work 40 hours a week at $25 an hour, being paid weekly on a Thursday. No written employment agreement was provided to the employee.
Taylor began work on December 8, working on redecorating an East Auckland property. By December 10, the day of Taylor's first pay, no payment had been made, leading Taylor to query his pay cycle.
Mana told Taylor wages were in fact paid fortnightly, but provided the employee with $250 in cash by way of a wage advance to "tide him over".
By Thursday of the following week when Taylor was expecting his first wage payment, no payment was made.
Frustrated with the lack of payment and communication, the next day Taylor told Mana he could no longer work until he had been paid for the work he had already completed.
Mana responded by telling his employee he was waiting to be paid by the client, by which point he would be in a position to pay Taylor's wage.
Over the next two days, Mana told Taylor he would be paid the next Wednesday, December 23, but he needed him to work in the meantime. If he did not show up for work, Mana said he would "look for someone else" to take Taylor's position.
An Auckland tradie has been ordered to pay almost $28k, after the Employment Relations Authority found he constructively dismissed his employee of just 15 days. Photo / NZME
Taylor complied and attended the job, by which point Mana informed him payday had been pushed back yet again to Thursday December 24.
Concerned with another delay, Taylor wrote to Mana saying he was worried he wouldn't be paid at all. Mana responded via text, saying "Once I pay you I won't need you any more. Thanks".
That same day, Taylor told Mana he was resigning, as he "could not survive without pay."
The next day, Taylor didn't receive any payment from Mana. He subsequently laid a complaint with the Employment Relations Authority, alleging constructive dismissal as a result of Mana's withholding of wages.
In considering the complaint, the authority was placed in a difficult position because Mana had refused to engage with the authority and did not submit any evidence to the investigation.
As a result, the authority could only consider the evidence put forward by Taylor, which included a number of text messages between himself and Mana.
The authority found that Mana's withholding of Taylor's wages met the threshold for constructive dismissal, as it was foreseeable that Taylor would resign if he wasn't paid.
"Mr Mana's actions were intentional and his culpability high. As the employer he was responsible for providing Mr Taylor a written employment agreement, paying his wages and holiday pay, and conducting himself in a manner which maintained and supported the duty of good faith. The failures to do so are serious breaches."
Taylor told the authority that the short period of employment caused him significant distress, particularly in the days before Christmas when money was already tight.
The authority found that in total, Mana was responsible for four statutory breaches - failure to provide a written employment agreement, failure to pay wages and holiday pay, and constructive dismissal.
In total, Mana was ordered to pay $20,000 in compensation to Taylor, as well as $1784 in wage arrears, plus interest.
An additional $6000 fine was ordered, half of which is to be paid directly to Taylor and the rest to the Crown.
Employer had "no idea" of compensation order
Speaking to Open Justice, Mark Mana appeared confused when asked about the ERA's decision, accepting that he had been contacted multiple times but had not responded to the authority's emails.
"I thought it was between me and him - I was trying to help the guy out by giving him a job," Mana said. He did not provide a reason for his withholding of Taylor's wages.
The tradie said he was shocked to hear about the authority's order, believing it was unreasonable.
"I'm a sole trader, just trying to make my way. [Taylor] was a young guy who I was trying to help."
Mana did not say whether he intended or had the ability to pay the costs associated with the order, saying that was a discussion he would have to have with a lawyer.
But he claimed he had already paid Taylor his unpaid wages in cash before the ERA decision.
According to the authority's judgment, Mana had 14 days from the release of the decision to pay both the Crown and Taylor, leaving just seven days to pay at the time of publication.
