| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2012] NZERA Auckland 234 |
| Determination date | 10 July 2012 |
| Member | J Crichton |
| Representation | A Rekke; D Snedden |
| Parties | Kidicorp Ltd v Sharma |
| Summary | BREACH OF CONTRACT - Applicant claimed respondent breached training bond clause in parties' employment agreement - Parties disputed when clause took effect - Authority found two year period began from conclusion of respondent’s course, not from when respondent received payment - Respondent to pay applicant $5,665 for breach of contract - Counterclaim dismissed - Teacher |
| Abstract | Applicant employed as teacher. Applicant claimed respondent breached training bond clause in parties' employment agreement. Parties disputed when clause took effect. Respondent denied money owing and claimed parties’ return of service (“RoS agreement”) subject to parties’ study agreement contract (“study agreement”). Respondent counterclaimed for compensation. Parties’ study agreement stated respondent required to pay back assistance owing at time resigned if applicant left employment within 24 months of financial assistance being provided. Respondent entered into RoS agreement with applicant’s most recent predecessor (“X”). RoS agreement stated respondent required to reimburse all practicum costs if employment terminated within two year period commencing from when respondent completed course. RoS agreement stated did not affect any other existing RoS agreements. Respondent entered into similar second RoS agreement for following two years. Respondent resigned during two years commencing after respondent completed course. Applicant purchased X.;AUTHORITY FOUND –;BREACH OF CONTRACT: Two year period began from conclusion of respondent’s course, not from when respondent received payment. Study agreement to be read in totality. Study agreement showed two year period began when respondent gained qualification. Wording of parties’ RoS agreements also showed two year period began when respondent completed course, not when respondent received assistance. Respondent to pay applicant $5,665 for breach of contract. Counterclaim dismissed. |
| Result | Application granted (breach of contract) ; Damages ($5,665.54) ; Application dismissed (counterclaim) ; Costs reserved |
| Main Category | Breach of Contract |
| Cases Cited | ABC Developmental Learning Centres (NZ) Ltd v Plasmeyer [2011] NZEMPC 15 |
| Number of Pages | 9 |
| PDF File Link: | 2012_NZERA_Auckland_234.pdf [pdf 170 KB] |