Former Lauder Hotel owners Robyn Cousins and Karen Harris have been successful in a claim heard by the Employment Relations Authority for arrears of wages and holiday pay for work they did at the Otematata Hotel.
In a decision released recently by authority member Philip Cheyne, Maitland Booth was ordered to pay Ms Cousins $9480 (net) as arrears of wages and holiday pay at 8% on the gross and Ms Harris $8820 (net) plus holiday pay at 8% on the gross.
The two women said they were offered and accepted employment by Mr Booth to work at the Otematata Hotel between December 2008 and March 2009.
Apart from a payment in March 2009, they were never paid any wages so their claim was for arrears of wages and holiday pay.
Mr Booth, the shareholder and director of North Dunedin Holdings Ltd, said the company, rather than he, arranged for Ms Cousins and Ms Harris to do due diligence operating the accommodation part of the hotel between December 2008 and March 2009 prior to entering into a lease.
Mr Booth said there was never any offer of employment or, if there was, it was an offer of employment with the company.
Mr Booth's company was in the business of buying and selling contracts relating to land and buildings.
In this case, the company contracted to buy the freehold of the Otematata Hotel intended to lease the bars, restaurant and accommodation, and then assign the purchase contract to another buyer, although it was open to other possibilities.
There was a "stark difference" between the evidence of Ms Cousins and Ms Harris, and Mr Booth, about a discussion held during a meeting between the trio in late November 2008.
The two women said there was no discussion about them leasing the stand-alone accommodation for them to operate their own business and that the discussion was about them managing the accommodation for an agreed hourly rate and some travel money while lease arrangements were established with others.
Mr Booth said there was no discussion about employment and only a discussion about them conducting due diligence running the accommodation prior to them entering into a formal lease.
It was found there was sufficient evidence to establish that an employment agreement was formed in respect of both women.
It was further found that the employment contract was between Mr Booth and Ms Cousins and Ms Harris.
