KEY POINTS:
The owners of Wellington brothels Il-Bordello and the Splash Club have been ordered to pay their former manager more than $20,000 after the Employment Relations Authority found they unjustifiably dismissed her.
Phiona Baskett took the case against B&M Entertainment, run by brothers John and Michael Chow, after her role was changed without adequate consultation, demoting her from group manager to site manager.
An earlier resignation by Ms Baskett had been withdrawn and she was entitled to stay on as group manager, the authority said in findings released today.
The new structure was a substantial variation to her employment agreement and one she did not have to agree to.
"In the absence of proper process before restructuring again, she was in effect having her job changed overnight."
There could be no justification, because of the lack of consultation, about the change of role expected of Ms Baskett, the authority said.
"She has therefore been unjustifiably dismissed."
It ruled that the Chows should pay her $12,318 in lost earnings and $8000 in compensation.
- NZPA