| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2013] NZERA Auckland 531 |
| Hearing date | 31 Oct 2013 |
| Determination date | 18 November 2013 |
| Member | J Crichton |
| Representation | N Mohammed, K Pragalathan ; D Kapa |
| Location | Auckland |
| Parties | Mohammed and Anor v Pacific Rose Motel Ltd |
| Other Parties | Pragalathan |
| Summary | JURISDICTION – Whether applicants in employment relationship with respondent – Whether Authority had jurisdiction to consider applicants’ claim for repayment of loan advanced to respondent – First applicant engaged second applicant to assist with work – Respondent aware second applicant assisting first applicant – Whether respondent expected to pay second applicant – No written employment agreement – Respondent purchased business – Vendor of business threatened liquidation if balance of settlement money not received – Applicants advanced sum to respondent – Respondent accepted loan advance outstanding – ARREARS OF WAGES – Applicants sought arrears of wages – Global sum budgeted for first applicant’s work – Applicants continued working after payment of wages ceased – Bookkeepers |
| Abstract | AUTHORITY FOUND –;JURISDICTION: Informal employment relationship. First applicant employee. Respondent understood second applicant’s assistance fell within global sum respondent budgeted for services to be provided. Second applicant not employee. No jurisdiction with respect to second applicant. Loan to respondent not incident of employment relationship. Enforcement action to be brought in Disputes Tribunal. No jurisdiction to consider applicants’ claim for repayment of loan advanced to respondent.;ARREARS OF WAGES: Respondent had limited cash flow. Respondent sought to spend no more than global sum on applicants’ work. No evidence respondent accepted claimed amounts owing. No arrears of wages. |
| Result | Application granted (jurisdiction – first applicant) ; Applications dismissed (jurisdiction – second applicant)(jurisdiction – repayment of loan advance)(arrears of wages) ; Costs to lie where they fall |
| Main Category | Arrears |
| Statutes | ERA s161(1)(r) |
| Cases Cited | B D M Grange Ltd v Parker [2005] ERNZ 343 ; [2006] 1 NZLR 353;Bryson v Three Foot Six Ltd (No 2) [2005] ERNZ 372 ; [2005] 3 NZLR 721 |
| Number of Pages | 9 |
| PDF File Link: | 2013_NZERA_Auckland_531.pdf [pdf 217 KB] |