| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2014] NZERA Christchurch 90 |
| Hearing date | 1 Apr 2014 - 2 Apr 2014 (2 days) |
| Determination date | 25 June 2014 |
| Member | H Doyle |
| Representation | M Henderson, G Biggs ; E Butcher |
| Location | Christchurch |
| Parties | Allott v Telecom New Zealand Ltd |
| Summary | UNJUSTIFIED DISADVANTAGE - Applicant claimed unjustifiably disadvantaged by retrospective adjustment of sales targets and retrospective changes to claiming rules for commission payments - Key client manager |
| Abstract | AUTHORITY FOUND -;UNJUSTIFIED DISADVANTAGE: Adjusting sales targets retrospectively after targets met and exceeded caused disadvantage to applicant. Applicant disadvantaged by either not being told of criteria for making certain claims or change of criteria without notice and agreement. E-mail did not amount to written approval of retrospective target adjustments by required person under sales incentive plan as amendment not finalised. Unfortunate that subsequent e-mail approving retrospective change referred to incorrect threshold for changes being made due to over achievement against targets. No basis to imply term into sales incentive plan that respondent able to amend targets retrospectively after relevant year had ended. Applicant unjustifiably disadvantaged by retrospective amendment of sales targets. Applicant's claims under one target appeared to meet requirements of targets document. Respondent had ability to assess if claims made correctly during relevant year and require applicant to claim differently. More likely than not respondent changed rules after realising omission in rules and applicant should not otherwise have known claims to be made in different manner. Unclear what contractual provisions allowed respondent to discount some of applicant's claims retrospectively following change to rules rather than application of rules. Applicant unjustifiably disadvantaged by change of claiming rules. REMEDIES: No contributory conduct. Appropriate to award holiday pay on lost remuneration. Respondent to pay applicant $44,561 reimbursement of lost wages. Interest payable. $8,000 compensation appropriate. |
| Result | Application granted ; Reimbursement of lost wages ($44,561.37) ; Interest (5%) ; Compensation for humiliation etc ($8,000) ; Costs reserved |
| Main Category | Personal Grievance |
| Statutes | ERA s103A;ERA Second Schedule cl11;Fair Trading Act 1986;Judicature Act 1908 s87(3);Wages Protection Act 1983 |
| Cases Cited | Auckland City Council v Hennessey (1982) ERNZ Sel Cas 4 |
| Number of Pages | 21 |
| PDF File Link: | 2014_NZERA_Christchurch_90.pdf [pdf 237 KB] |