A union representative is urging workers to check their employment contracts following the case of a popular Wellington restaurant that closed this month, leaving staff out of pocket for holiday pay.
The Five Boroughs eatery was put into liquidation on January 8, owing $32,431 to its staff in unused holiday entitlements.
Rather than wait for the results of the liquidation process, former owner Elie Assif told 1 NEWS yesterday they have found enough money to cover the debt.
"We have taken a personal loan, and received a legal assurance from the liquidators that this money will be paid to the staff. They will receive every cent they are owed," he said.
The former staff had been getting help from Ben Peterson from Unions Wellington who says all workers need to be aware of their rights, and a first step is to check their contract of employment.
"I think the hospitality industry has got a bad culture of everyone having a good time but not paying attention to their rights and it works - Until things go wrong. And in this case it's gone really wrong," Mr Peterson said.
News they'll be paid will come as some relief to the former employees of Five Boroughs who've been battling to get what they're owed.
Former employee Fiona Hewitt said she and her workmates want their situation to be a warning to others in the industry.
"The relationship is quite casual. You hang out with your employers after work, everyone is friends. Until something goes wrong, basically," she said.
The liquidators of Five Boroughs, Shephard Dunphy, says among its creditors it owes IRD around $250,000, plus extra fines. They say the business had been "under-capitalised from the start" and struggled to keep up with its rapid growth.
CEO of the Restaurant Association, Marissa Bidois, says cases like this are rare, but the workers should be able to find other jobs.
"Don't give up on it. There are lots of other opportunities and lots of other owners who need your help," she said.
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