Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No [2014] NZERA Auckland 413
Hearing date 29 Sep 2014
Determination date 10 October 2014
Member R Larmer
Representation H Wendelborn ; S Prestage (in person)
Location Auckland
Parties Newall v Prestage
Summary PENALTY - Applicant sought penalty for respondent inciting, instigating, aiding or abetting employer's (F") breaches of employment agreement ("EA") - Respondent chief executive, sole director and shareholder of F - Authority found previously that F breached applicant's EA multiple times - Failure to pay salary in full and on time - Failure to pay KiwiSaver contributions or PAYE - Client specialist"
Abstract AUTHORITY FOUND -;PENALTY: No evidence to support respondent's claims failure to pay applicant caused by faulty payroll system or former finance manager. Respondent mind" of F. Respondent hands-on director and dealt with applicant regarding employment related issues. Respondent aware obligations in applicant's EA being breached on ongoing basis. Respondent ultimately responsible for ensuring applicant paid and had power to direct that applicant be paid in full and on time. Twenty breaches of applicant's EA by F incited, instigated, aided or abetted by respondent. Appropriate to adopt totality approach to setting penalty. Applicant suffered real harm as result of breaches. Respondent deliberately led applicant to believe salary arrears about to be paid in order to keep applicant employed by F. Respondent's breaches deliberate, serious and sustained. Respondent caused F to deliberately mislead and deceive applicant. $30,000 penalty appropriate."
Result Application granted ; Penalty ($30,000)(payable to applicant) ; Costs reserved
Main Category Penalty
Statutes ERA;ERA s134(2);ERA s135(2)(a);ERA s135(5)
Cases Cited Newall v Forte Alpha Operations Pty Ltd [2014] NZERA Auckland 204;Xu v McIntosh [2004] 2 ERNZ 448
Number of Pages 17
PDF File Link: 2014_NZERA_Auckland_413.pdf [pdf 259 KB]