Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No [2014] NZERA Auckland 102
Hearing date 27 Feb 2014
Determination date 21 March 2014
Member J Crichton
Representation G French (in person) ; M Beattie
Location Auckland
Parties French v SGS New Zealand Ltd
Summary UNJUSTIFIED DISADVANTAGE - Applicant claimed unjustifiably disadvantaged by respondent's failure to agree terms of commission payments - Applicant's initial employment agreement (EA") provided for commission payments in first year with targets for next year to be set at later date - Varied EA provided applicant's remuneration to be maintained - Whether parties made arrangements for commission payments in subsequent year - Sales manager"
Abstract AUTHORITY FOUND -;UNJUSTIFIED DISADVANTAGE: Initial EA made provision for payment of commission for first year only with no specific provision for quantum of commission or targets for following year. Initial EA also clear parties intended commission would be payable in future years and parties had obligation to review, discuss and set targets for following year. No agreement between parties on any elements of commission structure for following year in manner contemplated by original EA. Even if arrangement for commission payment made in meeting in cafe, arrangements never reduced to writing and never formed part of written variation of EA. Varied EA did not deal explicitly with commission position. Applicant unjustifiably disadvantaged by respondent's failure to agree terms of commission payments. REMEDIES: No contributory conduct. $24,000 compensation appropriate for loss of commission payment benefit.
Result Application granted ; Compensation for loss of benefit ($24,000)(commission payment) ; Disbursements in favour of applicant ($71.56)(filing fee) ; Costs reserved
Main Category Personal Grievance
Statutes ERA;ERA s122;ERA s124
Cases Cited French v SGS New Zealand Ltd [2013] NZERA Auckland 511
Number of Pages 15
PDF File Link: 2014_NZERA_Auckland_102.pdf [pdf 192 KB]