Former boss ordered to pay $20k in holiday pay to hairdressers

Four Taranaki hairdressers have successfully applied to the Employment Relations Authority to have outstanding holiday ...

Four Taranaki hairdressers have successfully applied to the Employment Relations Authority to have outstanding holiday entitlements paid out.

A former boss of four Taranaki hairdressers has been ordered to pay them $20,000 in outstanding holiday pay.

An Employment Relations Authority (ERA) ruling, made on July 25 by Trish MacKinnon, found Sixta Enterprises Limited (SEL) and its sole director Sixta Ann Mckinlay jointly liable for the claim.

The four applicants were employees of SEL, which at the time traded as Just Cuts New Plymouth. Their employment ended on June 20, 2016 when SEL lost the license for the hairdressing franchise. All four received their final wage payment on that day.

In MacKinnon's determination, she said the four hairdressers were employed by the person who took over the franchise and were told they needed to pursue any outstanding holiday pay claims with SEL.

"They have been seeking payment of that holiday pay since, without success," MacKinnon said.

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Four discrete payments - $4,733.63, $10,096.04, $2,434.07 and $2,419.09 were sought by the applicants, along with interest.

Through the ERA investigation, Mckinlay had acknowledged the debt and her liability to pay it. However, she said she did not have the financial means to do so.

"She attributes her inability to pay the four former employees their outstanding holiday pay to her poor health over the last four years, coupled with a number of challenging business issues," MacKinnon said.

She said Mckinlay had cooperated with the investigation into the applicants' claim but maintained SEL had no assets.

"She says her involvement in the business has left her financially, mentally and physically crippled," MacKinnon said. However, no financial documentation had been provided to the ERA to support these claims.

In MacKinnon's ruling, she found SEL and Mckinlay jointly liable for the holiday pay owed to each applicant and ordered a total of  $20,762.28 be paid, which includes the four outstanding holiday entitlements plus interest.

The four applicants, who were represented in the proceedings by the Taranaki Community Law Trust, did not seek costs.

 - Stuff

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