The bills continue to climb for a small painting and decorating business whose sub-standard employment practices and refusal to abide by orders have been in the spotlight since 2022. KCR Boutique Painters and Decorators has now been hit with an order to comply with an improvement notice issued in late 2023, plus a $3000 penalty for failing to abide by it. The company said in a limited response outlined in a decision this week by the Employment Relations Authority, that it had been unable to comply with the notice because it no longer had employees. It also said records were held on business management software it no longer had access to and compliance would require an accountant. Authority member Helen van Druten said in her findings, after an investigation into whether there were reasonable grounds to issue the earlier improvement notice, she did not accept that argument. Trouble for the business began in September 2022 when the Labour Inspectorate received a complaint from a former worker alleging non-payment of annual holiday pay owed. Photo/123rf Among a list of reasons why, she said having no employees would make it easier to comply because there would be no recent records to review. Company director Katherine Courtenay-Roe (also known as Kate McLaren) did not respond to the recent investigation. Trouble brews after worker’s complaint Trouble for the business, whose address was registered to an empty lot in Hamilton, began in September 2022 when the Labour Inspectorate received a complaint from a former worker alleging non-payment of annual holiday pay owed when the job ended. The ERA finding this week also revealed a Hamilton residential address was allegedly falsely used to register businesses operated by Courtenay-Roe, who managed a number of other legal entities, including Simply Girls Painters and Decorators. Van Druten said the ERA was provided with a copy of a complaint to the Companies Office from residents at the Hamilton address claiming it was falsely used to register the businesses. ‘Close to breaking point’ NZME reported in September 2022 that Courtenay-Roe was facing financial penalties for poor workplace practices. On top of an order for $22,000 to one of several workers she had sacked, she was hit with another bill for legal costs. She told NZME at the time she was “close to breaking point” as her efforts to set up in business, primarily to employ young women, were crumbling around her. Efforts to contact her this time have yielded no result, with phone calls going to an answer machine and she has not responded to emails. Investigation expands to include ‘sampled’ workers The Labour Inspectorate enforces and monitors compliance with minimum employment standards, as a division of the Ministry of Business, Innovation and Employment (MBIE). In February 2023, KCR was told by the inspectorate an investigation had started into compliance with minimum employment standards. Van Druten said in her decision released publicly on Tuesday that the investigation expanded to include four other “sampled employees”. They were employees under the age of 20 and on minimum wage. In March 2023, a notice requiring supply of employment records for the past six years was sent to KCR, followed by a request for wage and time records, holiday and leave records and employment agreements from July 2022 to March 2023 for five employees. Employment agreements and wage and leave records were eventually provided and in November 2023, KCR was issued the improvement notice, requiring it to pay wage arrears and holiday pay, and maintain accurate wage, time and leave records in future. Van Druten said KCR did not file an objection to the notice, and to date, there was no evidence of compliance with the notice and the money owed to the named employees remained outstanding. She had relied heavily on the investigation report and corroborating evidence provided in making her decision after not receiving a submission from KCR. Workers los...