A woman who sold her house in Malaysia to secure a new future in New Zealand is back home after she was sacked from the family business, and drained of her finances. Photo / 123RF
A woman who sold her house in Malaysia to secure a new future in New Zealand is back home after she was sacked from the family business, and drained of her finances. Photo / 123RF
A woman who sold her house in Malaysia to pay more than $70,000 she was told would secure her work in the family business in New Zealand lost not only her money but eventually her job too.
Now the Employment Relations Authority has instructed the former owner of a restaurant business, Banana Leaf Limited, to pay Kasthuri Sitia part of $33,579 in unpaid wages and compensation when she was dismissed after falling out with the family.
Sitia left Malaysia for New Zealand in early 2018 to live with her sister Shanti, and brother-in-law Manickam Muniandy, who was the shareholder and director of the business.
He’d offered her a job but told her she first had to pay $71,387.
Sitia sold her house in Malaysia and transferred the money into her mother’s bank account, as instructed by Muniandy.
The Employment Relations Authority has ordered the former director of restaurant business Banana Leaf Limited to pay part of a $33,579 award to a family member he dismissed. Photo / 123RF
She was told that if she banked it into her personal account, Immigration NZ may not accept her Visa application, the ERA said in a decision released this month.
She understood that if she did not transfer the payment she would not be employed, would not be supported by the company in applying for a work visa, and would not be offered the chance of a shareholding in the business.
Before she left Malaysia Sitia was told there might be a chance to buy a 50 per cent share in the business.
Muniandy explained that BLL needed investment in order to grow before it could employ her.
Her letter of employment was used to support her work visa application, and on February 9, 2018, she signed an employment agreement with BLL for 40 hours of work per week.
In April 2018 Kasthuri Sitia was granted a working visa which also recorded her hourly pay as not less than $20.65.
She worked a 42-hour week over 33 weeks but soon noticed irregularities in her pay.
In May 2018, Sitia had also become concerned that Muniandy appeared to be steadily withdrawing the money she had placed in her mother’s account without any formal agreement, for his own purposes.
ERA member Geoff O’Sullivan said she did not know this for certain, but neither was there evidence that Sitia’s mother might have withdrawn the money herself, or indeed transferred it back to her daughter on request.
He said throughout her employment she was not provided with any payslips and in July 2018 she moved out of Muniandy and her sister’s home.
Sitia continued to raise concerns regarding outstanding wages and by November 2018, she decided to confront Muniandy about the problems.
The discussion became heated and ended with him telling her to leave the business.
Sitia was extremely upset and was left to walk to where she was living, crying the entire time while stressed and panicked.
She continued to contact Muniandy both by email and text asking that he address unpaid wages and holiday pay, but got no response, the ERA said.
In January 2019 she received a letter alleging she had abandoned her employment and had effectively resigned, which left her embarrassed and ashamed to tell her family back in Malaysia about what had happened.
She then lodged a claim with the ERA, initially against the company and Muniandy as a director.
The ERA said it became apparent during the investigation that BLL was no longer trading and that a new company, Banana Leaf 2019 Limited had been set up by Sitia’s sister, Shanti Sitia, as the sole shareholder and director.
Kasthuri Sitia believed that it was a “phoenix company set up for the sole purpose of thwarting her claims”.
Banana Leaf (2019) Ltd was joined to the proceedings at the Authority’s direction and the matter was heard in October last year, with Shanti Sitia representing the company.
She produced documentation that showed she was the sole shareholder and director of the new entity; that her relationship with Muniandy had broken down and that he was no longer in New Zealand.
He had offered to sell her the former business, so she arranged financing, took legal advice and set up a new company, Banana Leaf (2019) Limited to purchase the business.
O’Sullivan said the evidence showed there was no commercial link between the former and current businesses, and that the sale and purchase of the old business was a bona fide commercial transaction.
Banana Leaf (2019) Limited was listed with the New Zealand Companies Office as trading, having filed an annual return two days ago.
NMZE has tried reaching Kasthuri Sitia for comment. The lawyer who acted for her said she was now back in Malaysia. She has not responded to emails seeking comment.
NZME has also tried to reach Muniandy via social media and has also sought comment from Shanti Devi Kila Sitia via email and her Kapiti-based restaurant.
O’Sullivan said there were barriers to Kasthuri Sitia’s claim linked to the money she had paid upfront, but that there had been no process attached to her dismissal and no attempt by BLL to justify it.
He found that she was unjustifiably dismissed and therefore entitled to unpaid wages of $21,290 plus $2289 holiday pay, which Muniandy was ordered to pay as a person involved in a breach of employment standards, and because the former business couldn’t pay it.
The ERA also awarded $10,000 compensation for humiliation, loss of dignity and injury to feelings.
Tracy Neal is a Nelson-based Open Justice reporter at NZME. She was previously RNZ’s regional reporter in Nelson-Marlborough and has covered general news, including court and local government for the Nelson Mail.
