Restaurant owes workers and IRD
A Paraparaumu restaurant and bar that withheld thousands of dollars in KiwiSaver and student loan debt payments must pay workers and Inland Revenue $46,756 in arrears.
The Employment Relations Authority found Smith & Co Hospo, which traded as The Social, deducted $9600 from wages in KiwiSaver contributions and student loan repayments but never forwarded the payments.
Smith & Co Hospo co-directors
Melissa Estinel and Nikolai Smith, who are also owners of the shareholding company Genolier Enterprises, did not participate in the authority’s process.
The business closed on February 12 last year and seven staff were dismissed without warning or notice.
While the workers did not challenge the dismissal, they claimed lost holiday pay and wages, payment in lieu of notice as well as the KiwiSaver contributions and student loan repayments the company deducted and withheld.
The Employment Relations
Authority ordered Smith & Co to pay the seven workers $34,086 in lieu of notice, unpaid wages and holiday pay.
It was also ordered to pay Inland Revenue $7295 for the KiwiSaver contributions for seven staff and $2375 in student loan repayments on behalf of three workers. Smith & Co was also ordered to pay the workers’ representative $3000.
The company was placed into liquidation in December by the High Court in Auckland following a submission by Inland Revenue. Creditors had until January 31 to make claims.
In 2016, The Social copped flak for banning doggy bags citing health concerns.
The authority said the directors Estinel and Smith could be held personally liable for the debt should Smith & Co fail to pay. Continuing failure could also result in the imposition of fines, the sequestration of property and/or imprisonment, the authority said.
The registered address of Genolier Enterprises was 61 Moses Road, Kaukapakapa, and had a capital value of $1.25 million. QV records showed the house was sold last year.
The workers claimed lost holiday pay and wages, payment in lieu of notice as well as KiwiSaver contributions and student loan repayments.