| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2015] NZERA Christchurch 35 |
| Hearing date | 26 Feb 2015 |
| Determination date | 13 March 2015 |
| Member | H Doyle |
| Representation | A Gallagher ; no appearance |
| Location | Christchurch |
| Parties | Walklin v Albany Group 1 Ltd |
| Summary | ARREARS OF WAGES - Applicant sought arrears of wages - Whether applicant's employment agreement (EA") provided for six months' notice if applicant's position redundant or six months' redundancy compensation - Whether applicant dismissed during notice period - PENALTY - GOOD FAITH - Applicant sought penalty for respondent's breach of good faith - COSTS - Applicant sought $1,200 contribution towards costs - No appearance for respondent - Program manager" |
| Abstract | AUTHORITY FOUND -;ARREARS OF WAGES: Notice period" relating to redundancy worded differently from other notice periods and reasonable person would associate words "lump sum" with payment at particular time. "Lump sum" not normally associated with notice period. Correspondence between parties after business sold indicated applicant entitled to six months' redundancy compensation. Applicant not provided with six months' notice of redundancy. Reasonable person would conclude applicant to be provided with six months' redundancy compensation rather than six months' notice. Applicant entitled to reasonable period of notice. Applicant entitled to one further weeks' notice in addition to redundancy compensation. Applicant's disadvantage grievances derived from disputed interpretation about applicant's entitlement to redundancy compensation. Given Authority's findings, applicant not dismissed during notice period. Respondent to pay applicant $77,884 arrears of wages and $1,500 arrears of KiwiSaver.;PENALTY - GOOD FAITH: No deliberate attempt by respondent to include redundancy entitlement under notice periods in EA so as to mislead or deceive applicant. Respondent maintaining that applicant required to work out notice period despite no evidence of any work to be carried out could be said to be breach of good faith. Respondent breached good faith by suggesting termination of applicant's employment actually resignation because applicant had not accepted offer of fixed-term employment. Some deliberateness to respondent's actions and breaches serious, but not sustained. No penalty.;COSTS: Less than one day investigation meeting. Respondent to pay applicant $1,200 contribution towards costs." |
| Result | Application granted (arrears of wages) ; Arrears of wages ($77,884.61) ; Arrears of KiwiSaver ($1,500.20) ; Application dismissed (penalty - good faith) ; Costs in favour of applicant ($1,200) ; Disbursements in favour of applicant ($71.56)(filing fee) |
| Main Category | Arrears |
| Statutes | ERA s4A;ERA s103(3);ERA s157;Companies Act 1993 s248(1)(c) |
| Cases Cited | Chief Executive Officer of the Department of Corrections v Corrections Assoc of New Zealand Inc [2005] ERNZ 984 (EmpC) |
| Number of Pages | 13 |
| PDF File Link: | 2015_NZERA_Christchurch_35.pdf [pdf 260 KB] |