| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2015] NZERA Christchurch 52 |
| Hearing date | 26 Mar 2015 |
| Determination date | 23 April 2015 |
| Member | H Doyle |
| Representation | P Cahill ; L Grenfell, E McCalum |
| Location | Christchurch |
| Parties | McDonald v G.L Freeman Holdings Ltd |
| Summary | ARREARS OF HOLIDAY PAY – Applicant sought arrears of holiday pay – Whether penalty clause in employment agreement enforceable – Clause allowed respondent to withhold wages or holiday pay if employee gave less than agreed amount of notice – Deductions from wages - COSTS – Applicant sought $2,203 contribution towards costs – Cleaner |
| Abstract | AUTHORITY FOUND –ARREARS OF HOLIDAY PAY: Greatest loss that could follow failure to give notice would be allocating applicant’s hours among other employees until replacement found. Clause out of proportion and extravagant compared to loss. Clause penalty intended to compel performance of notice period. Clause unenforceable. Respondent to pay applicant $1,047 arrears of holiday pay. Interest payable.COSTS: Half hour investigation meeting. Respondent to pay applicant $583 contribution towards costs. |
| Result | Application granted ; Arrears of holiday pay ($1,047.40) ; Interest (5%) ; Costs in favour of applicant ($583.33) |
| Main Category | Arrears |
| Statutes | ERA Second Schedule cl11;Judicature Act s83(3) |
| Cases Cited | Dunlop Pnenumatic Tyre Co Ltd v New Garage & Motor Co Ltd [1914] UKHL 1, [1915] AC 79;Livingston v G.L. Freeman Holdings Ltd [2013] NZERA Christchurch 90 ;;Paengkam v G.L. Holdings Ltd [2013] NZERA Christchurch 235 |
| Number of Pages | 6 |
| PDF File Link: | 2015_NZERA_Christchurch_52.pdf [pdf 151 KB] |