| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2013] NZERA Auckland 373 |
| Hearing date | 12 Apr 2013 |
| Determination date | 20 August 2013 |
| Member | K J Anderson |
| Representation | H Burdon ; S Menzies |
| Location | Hamilton |
| Parties | McQuade v Crusader Meats New Zealand Ltd |
| Summary | ARREARS OF WAGES – Applicant sought arrears of wages – Employment agreement treated portion of applicant’s wages as non-taxable to compensate for travel to and from work – Inland Revenue instructed respondent to deduct tax from total amount of applicant’s wages – Whether employment agreement frustrated – UNJUSTIFIED DISADVANTAGE – UNJUSTIFIED DISMISSAL – Constructive Dismissal – Applicant claimed unjustifiably disadvantaged by unilateral change to employment agreement and unjustifiably dismissed by respondent – Whether disciplinary action made applicant’s work too hard and stressful – Warnings |
| Abstract | AUTHORITY FOUND –;ARREARS OF WAGES: Change in tax arrangement not unilateral change to applicant’s employment agreement but took place with applicant’s knowledge to ensure compliance with law regarding deduction and payment of PAYE tax. Doctrine of frustration not applicable as Inland Revenue direction did not frustrate entire employment agreement. Travel arrangement void as breached Income Tax Act 2007. No arrears of wages.;UNJUSTIFIED DISADVANTAGE – UNJUSTIFIED DISMISSAL: Applicant disadvantaged by loss of income but respondent required to comply with provisions of Income Tax Act 2007. No unjustified disadvantage. No indication respondent in breach of duties or obligations to applicant. No dismissal. |
| Result | Applications dismissed ; Costs reserved |
| Main Category | Arrears |
| Statutes | ERA s103(1)(b);Illegal Contracts Act 1970;Income Tax Act 2007;Minimum Wage Act 1983 |
| Number of Pages | 8 |
| PDF File Link: | 2013_NZERA_Auckland_373.pdf [pdf 217 KB] |