Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No [2012] NZERA Christchurch 22
Hearing date 17 Jan 2012
Determination date 09 February 2012
Member M B Loftus
Representation M Round ; H van Schreven
Location Christchurch
Parties Dew v Ollivers Cafe Ltd
Summary UNJUSTIFIED DISMISSAL – Redundancy – Applicant claimed unjustifiably dismissed by respondent – Respondent claimed redundancy brought about by inability to continue employment as result of Christchurch earthquake – Earthquake severely affected both respondent caf�s with one still within red zone and other significantly damaged and yet to reopen – Respondent directors suffered severe financial difficulties resulting from no income – Respondent initially chose to try and retain staff who remained in Christchurch and relied on Government Earthquake Wage Subsidy – Text messages sent to employees to ascertain continued eligibility for subsidy and to keep staff informed about what was happening with business – Respondent directors decided to have more active role in caf� to be reopened so required less staff – Manager positions not required – Respondent director (“W”) claimed telephoned applicant and gave option of other employment including caf� in Nelson – W claimed applicant ignored options – Applicant claimed W suggested applicant hand in notice so holiday pay could tide applicant over until caf� reopened – Applicant denied alternate employment discussed – W claimed applicant abusive – Applicant denied swearing at W – W claimed applicant’s conduct evidence of complete breakdown of relationship – Applicant dismissed – Authority found circumstances entitled respondent to review staffing needs – Found all staff must be given fair opportunity for retention but did not happen – Found applicant selected for redundancy because of alleged behaviour over telephone – Found no consultation over selection process – Found choice made for disciplinary reason and made in heat of moment – Dismissal unjustified – REMEDIES – 10 percent contributory conduct – Found applicant attempted to mitigate loss by actively seeking alternative employment – $2,250 reimbursement of lost wages appropriate – $900 compensation appropriate – ARREARS OF WAGES – Applicant claimed not paid for notice period – Respondent accepted payment not made and agreed to make payment forthwith – Authority ordered payment be made – Branch Manager
Result Application granted ; Contributory conduct (10%) ; Reimbursement of lost wages ($1,000 reduced to $900) ; Compensation ($2,500 reduced to $2,250) ; Arrears of wages (quantum to be determined) ; Costs reserved
Main Category Personal Grievance
Statutes ERA s4(1A)(c);ERA s67A;ERA s103A;ERA s124
Cases Cited Kostic v Dodd unreported, Couch J, 11 July 2007, CC 14/07
Number of Pages 11
PDF File Link: 2012_NZERA_Christchurch_22.pdf [pdf 54 KB]