Kia ora

This sounds like a frustrating situation for you. I hope you and your business are faring ok otherwise.

I agree with all of Jada’s above comments. I am confident that the ‘abandonment of employment’ clause would have been activated as intended by this situation, ie. after three days of absence. However, you absolutely should have meticulous record keeping and practices (as outlined by Jada).

I also strongly recommend you do not pay any funds to ‘Moola’. This would only be allowed with the explicit consent of the employee. To be clear, this sounds like unethical and potentially illegal behaviour from ‘Moola’.

You may want to seek advice around whether your former employee is actually entitled to the holiday leave that they appear to be accruing in your payroll system. Given they have not worked at all, the system may be incorrectly producing these hours. One way to do this would be to ask the payroll provider themselves about whether this is correct.

Ngā mihi
Tim