There were also complaints from customers and staff about her bad breath.
"(Mr Arora) was cautious about raising this with Mrs Bhola and made suggestions that she should perhaps chew mints or receive some assistance from a dentist," the report said.
A year after Mrs Bhola started work at the salon, Mr Arora gave her a final written warning, which said her actions were "destroying the business reputation" and her behaviour was unreasonable.
He said the company also no longer supported her application for permanent residency.
The authority noted that Mr Arora had determined that the "tenure of Mrs Bhola's employment had a limited timeframe".
On December 10, 2010, Mrs Bhola was working and planned to leave at 6pm so she could go to her temple.
Her evidence was that when she wanted to go, she was told to stay and work on another client.
She told the authority that Mr Arora said to her: "If you don't attend these clients, don't come back tomorrow".
Mr Arora, however, said Mrs Bhola had arrived late at work that day and at a busy time during the day, she had refused to work on clients and had left for lunch.
He said about 5.30pm the waiting room was full of clients, but Mrs Bhola "somehow managed her time" so she would be able to leave at 6pm.
Mr Arora said she did this by lingering for longer than necessary with some customers.
"Despite numerous requests from me, Rashmi refused to serve the customers."
The following day, Mrs Bhola asked the salon's manager Jitendra Kumar to ask for a formal letter of termination from Mr Arora, which he wrote for her.
The authority said it believed Mrs Bhola believed she had been fired, which was why she asked for the letter.
It said Mr Arora had other options he could have taken such as suspending Mrs Bhola on pay while an investigation was carried out, or conduct a formal meeting into the incident.
It awarded her $8022.45 in wages and compensation.
Mr Arora did not want to comment on the decision and APNZ was not able to get in touch with Mrs Bhola.