The former owner of popular Christchurch buffet restaurant Sequoia 88 and a bar and eatery, Watershed Bar and Restaurant, has been banned from hiring staff for three years.

Gordon Freeman was found to have intentionally and persistently breached employment law, and is the first person face a banning order by the Employment Court.

The sole director and shareholder of Victoria 88 Limited was banned from hiring, being involved in hiring employees, or being an officer of an employer, following an application by the Labour Inspectorate to the Employment Court.

Despite being fined previously by the Employment Relations Authority (ERA), Freeman continued to include an illegal clause in his employment agreements stating that staff would forfeit their holiday pay if less than six weeks' notice was given when resigning.

"Mr Freeman cynically abused the trust placed in employers, and disregarded the basic rules put in place to ensure everyone in the workplace is getting a fair deal," said Labour Inspectorate national manager Stu Lumsden.

Lumsden said the ban should serve as a clear warning to any other employers who aren't taking their obligations seriously.

"This case demonstrates the Inspectorate's commitment to having employers removed from the labour market who seriously fail to meet their obligations, and are unfit to be employers," he said.

This was the first time a banning order had been imposed by the Employment Court since a sanction introduced in 2016 to strengthen the enforcement of minimum employment standards, Lumsden said.

In addition to the banning order, Freeman and his businesses must pay $20,000 in penalties, of which $7,845 is to be paid to 23 affected employees. Half of those penalties, including the arrears, are to be paid by Freeman personally.

Watershed Bar and Restaurant have been sold by Freeman and while the current owners have kept the name, they have no relation him.

The inspectorate first took action against Freeman's former company G L Freeman Ltd in 2015.

Employees were forced to take annual leave by being rostered on for a day of annual leave every week without consultation, and without applying for it.

After the inspectorate intervened, the company reinstated the leave, but did not pay out employees upon termination, resulting in arrears of $7,122 to four employees, and a $15,000 penalty to the company.

A person who breaches a banning order is liable on conviction by the District Court or the High Court to a fine up to $200,000, a term of imprisonment of up to three years, or both.

Anyone concerned about their employment situation, or the situation of someone they know, should call 0800 20 90 20 where they can report their concerns in a safe environment.