Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 93A/04
Hearing date 7 Apr 2004 - 4 May 2004 (4 days)
Determination date 06 August 2004
Member V Campbell
Representation P Skelton ; J Latimer
Location Auckland
Parties Johnson v Prism Group Holdings Ltd
Summary COMPLIANCE ORDER - Compliance with variation to employment agreement sought - Whether valid variation to employment agreement - Intention of respondent's board of director's to remove applicant from position - Possible exit or transfer suggested - Board allowed board member to negotiate applicant's exit or transfer - Draft settlement sent to applicant - Settlement proposed board member to take over applicant's role - Whether parties reached final settlement - Whether board member had authority to conclude settlement - Whether board ratified settlement by subsequent conduct - New position for applicant sufficiently finalised - Board member had actual authority to negotiate settlement but no ostensible authority to sign agreement - Board's appointment of board member in applicant's old position was evidence of ratification of settlement by board - Binding settlement reached - Agreement amounted to valid variation of applicant's employment agreement - Compliance ordered - Respondent to comply with terms of agreement including payment of annual holidays outstanding - Amounts owing to be offset against money already advanced by respondent - Counter-claim - Alleged breach of good faith - Alleged misled and deceived respondent over debtor status of other company - Alleged breach of implied term to act with skill, diligence and competence - Respondent had knowledge of company's bad debtor status - Settlement agreement estopped respondent from bringing counter-claim - Settlement agreement was full and final settlement of matter
Result Application Granted (Compliance order) ; Application dismissed (Counter-claim) ; Compliance ordered ; Orders accordingly ; Costs reserved
Cases Cited Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd 2 NSWLR 309;Bank of Credit and Commerce International SA v Ali [2002] 1 AC 251;Fletcher Challenge Energy Ltd v Electricity Corporation of New Zealand Ltd [2002] 2 NZLR 433;Marlow v Yorkshire New Zealand Ltd [2000] 1 ERNZ 206;NZ Building Trades Union v Ebert Bros Construction Ltd [1991] 3 ERNZ 1004;Rickards v Ruapehu District Council [2003] 1 ERNZ 400;STAMS v MM Metals Ltd [1993] 1 ERNZ 115
Number of Pages 24
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