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The operator of a Wellington sex shop has been ordered to pay a former Whanganui woman almost $10,000 in lost wages and compensation by the Employment Relations Authority (ERA).
At a hearing in Wellington the authority found that a company called FritzAMS Ltd didn't pay Tania Lee Gibbons after her position was made redundant.
Ms Gibbons shifted from Whanganui to work for the Wellington company as a party manager. She had been employed by FritzAMS since September 2015 when that company purchased the assets of the company for which she previously worked.
She had been employed by the previous owners of the business as a party manager and when FritzAMS purchased the business she was asked by Fritz Petersen, sole director of that company, to stay on as an employee of FritzAMS.
She moved from Whanganui, where she was previously based, to take up the role in Wellington where the company's head office and warehouse were located, signing an individual employment agreement in September 2015.
On June 20 this year Ms Gibbons was contacted by text message by a former owner of the business advising her to contact that person before she went to work that day. Ms Gibbons did, and was informed the previous owner had seized all assets including stock.
Ms Gibbons was further advised she could not sell any stock with the D.VICE branding.
She contacted Mr Petersen who told her to continue working in the shop until something could be worked out. But she found she was unable to operate the shop. Stock had been seized,along with the booking system and laptops with all the company's processes on it by the former owner.
Ms Gibbons told the ERA she was left with seven staff who were contracted to FritzAMS with stock they were not permitted to sell and no jobs.
She told Mr Petersen this meant her position was disestablished and redundant and asked him to write her a letter to that effect. She says he agreed and informed her that his accountant would do that. When no letter arrived she drafted a letter herself, at Mr Petersen's suggestion, which he signed.
The letter stated that, based on her notice period of eight weeks, she would be paid the sum of $6,769.28 (before tax) and also be paid her other entitlements.
The authority ordered FritzAMS Ltd to pay Ms Gibbons $6094 in unpaid salary as well as $3727 outstanding holiday pay.
Another staff member Chas Kurdt Fox was awarded $7000 compensation for the hurt and humiliation he suffered due to the abrupt loss of his job, both financially and emotionally.
He was also awarded $641 wage arrears, $752 unpaid holiday pay, $2028 pay in lieu and lost earnings of $6592.