Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No [2013] NZERA Christchurch 90
Hearing date 9 May 2013
Determination date 16 May 2013
Member H Doyle
Representation C McDonald ; T McGinn
Location Christchurch
Parties Livingston v G L Freeman Holdings Ltd
Summary ARREARS OF HOLIDAY PAY - Applicant sought arrears of holiday pay - Applicant failed to work out notice period - Whether forfeiture clause in parties employment agreement enforceable - Whether clause genuine estimate of loss caused - COUNTERCLAIM -BREACH OF CONTRACT - PENALTY - Respondent sought damages and penalty for applicant's failure to work out notice period - Receptionist
Abstract ARREARS OF HOLIDAY PAY: Forfeiture clause penalty to compel performance rather than a genuine estimate of loss caused. Clause not enforceable. Applicant entitled to money withheld from final pay. Respondent to pay applicant $1,943 arrears of holiday pay.;COUNTERCLAIM - BREACH OF CONTRACT - PENALTY: No evidence of actual damage resulting from applicant's failure to work out notice period. No damages. Applicant aware of notice obligation. $500 penalty appropriate.
Result Applications partially granted; Arrears of wages ($1943.50); Penalty ($250)(payable to respondent)($250)(payable to Crown); Costs reserved
Main Category Arrears
Statutes ERA s134
Cases Cited Dunlop Pneumatic Tyre Co Ltd v New Garage & Motor Co Ltd [1915] AC 79;Oztyrk v Gultekin (t/a Halikarnas Restaurant) [2004] 1 ERNZ 572
Number of Pages 12
PDF File Link: 2013_NZERA_Christchurch_90.pdf [pdf 182 KB]