| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2012] NZERA Christchurch 97 |
| Hearing date | 27 Oct 2010 |
| Determination date | 21 May 2012 |
| Member | M B Loftus |
| Representation | J Douglas ; E Gray |
| Location | Queenstown |
| Parties | ABC Developmental Learning Centres (NZ) Ltd v O'Meara |
| Summary | BREACH OF CONTRACT – RECOVERY OF MONIES – Applicant sought damages for respondent’s breach of return of service agreement (“ROS”) – Applicant sought recovery of wages paid to respondent during study periods – Authority found respondent agreed to reimburse applicant for wages paid to respondent during study periods should respondent not serve two year period – Found nothing in ROS allowed partial reimbursement by respondent based on proportion of two year period served by respondent – Respondent to pay applicant $11,987 damages – COUNTERCLAIM – ARREARS OF WAGES – Respondent sought arrears of wages deducted from respondent’s final pay – Found employment agreement allowed applicant to deduct monies owing from respondent’s pay – No arrears of wages – Early childhood teacher |
| Abstract | Respondent employed by applicant as early childhood teacher. Applicant sought damages for respondent’s breach of return of service agreement (“ROS”). Applicant sought recovery of wages paid to respondent during study periods. Respondent gained applicant’s approval to undertake study to become qualified teacher. Respondent and applicant entered into ROS under which applicant agreed to pay study fees while respondent agreed to remain employed by applicant for two years after completion of respondent’s study. ROS provided that if respondent left employment with applicant within two year period, respondent liable to repay study fees. Respondent given unauthorised undertaking by manager that applicant would also pay respondent’s wages during study periods. Respondent signed amended ROS to reflect respondent’s liability to reimburse wages paid during study periods should respondent not serve two year period. Respondent claimed agreement amended after respondent’s signature. Respondent resigned within two year period. Respondent denied owed applicant wages paid by applicant during study periods. Respondent claimed amount owing should be reduced to reflect proportion of two year period served by respondent. Respondent sought arrears of wages deducted from respondent’s final pay.;AUTHORITY FOUND –;BREACH OF CONTRACT – RECOVERY OF MONIES: Authority noted delay in issuing determination due to Christchurch earthquakes. Respondent agreed to amended ROS that respondent would reimburse applicant for wages paid to respondent during study periods should respondent not serve two year period. Nothing in ROS allowed partial reimbursement by respondent based on proportion of two year period served by respondent. Respondent to pay amount owing in full. Respondent to pay applicant $11,987 damages.;COUNTERCLAIM – ARREARS OF WAGES: Employment agreement allowed applicant to deduct monies owing from respondent’s pay. No arrears of wages. |
| Result | Application granted (breach of contract and recovery of monies); Damages for breach of contract and recovery of monies ($11,987.67); Application dismissed (counterclaim)(arrears of wages) |
| Main Category | Breach of Contract |
| Statutes | Income Tax Act 2007 sBB2(1) |
| Cases Cited | ABC Developmental Learning Centres (NZ) Ltd v Plasmeyer [2011] NZEmpC 15 |
| Number of Pages | 9 |
| PDF File Link: | 2012_NZERA_Christchurch_97.pdf [pdf 44 KB] |