Chase was also receiving a Winz benefit at the time.
Two months later Parker ended Chase's employment abruptly via text message.
In an affidavit dated December 2021, Parker said the employment ended mutually when Chase refused to agree to work fewer hours.
"The business has not been making enough money in order to accommodate employing her on the hourly rate and number of hours that she wanted," Parker said.
According to the ERA decision, messages between the pair showed Parker asking for Chase to work less saying they "needed to decrease the hours until the work picked up".
"Sorry, that doesn't work for me. I thought this was a secure, long-term job," Chase replied.
Parker let Chase go, giving her a two-week payout.
She then accused Chase of "serious misconduct" claiming she was involved in Winz fraud.
"Finding out about Kara's fraud broke my trust and confidence completely with her. This is why I let her go."
Chase denied all allegations and told the ERA her Winz case manager knew she had been employed by the dog daycare on a casual basis, with this turning into permanent employment.
Parker also accused Chase of stealing.
"It was clear she stole products. I didn't make a fuss, to avoid conflict with her."
The ERA dismissed this allegation.
As a result of the dismissal Chase and her family received abusive texts and Facebook messages from Parker.
"We lived in such a small community that everyone seemed to know that there had been a
problem with the employment," Chase said.
"The lies were hard to hear and were very difficult to manage in a small community."
Employment Relations Authority member Rachel Larmer said the employer had not acted fairly and reasonably toward Chase.
"A reasonable employer would not have concluded that Chase had engaged in serious misconduct or that dismissal was the appropriate response."
Parker was ordered to pay Chase $19,491, which included holiday pay, lost remuneration, legal costs and distress compensation.
Open Justice asked Parker for comment but she declined.