Mechanic Alan Smith has been awarded more than $19,000 in backpay after the Employment Relations Authority ruled he didn’t work nine months for free.
Diesel mechanic Smith sold his Bay of Plenty business After Hours Automotive to Alister Gray and Karen Watson in 2016.
According to Smith, an agreement was reached which would see him stay on as an employee.
However, the new owners claimed he was just helping out, Stuff reports.
The ERA awarded Smith $19,146.90 in wage arrears.
“Mr Smith was not in a financial position to work without remuneration. I do not accept Ms Watson’s evidence that Mr Smith undertook the work to ‘give him something to do’,” ERA adjudicator Jenni-Maree Trotman ruled.
Gray did make some regular payments of between $300 and $500 after Smith demanded wages, but took them as them demands of payment for the business.
Trotman ruled the later payments were a “reward” for the work Smith had performed.
Trotman also ordered Smith to pay $5000 for taking equipment from After Hours Automotive’s business.
“Mr Smith has refused to return the items. I am satisfied that a penalty should be imposed.”
