Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 155/05
Hearing date 22 Mar 2005
Determination date 29 April 2005
Member L Robinson
Representation B Spong ; C Sparling
Location Auckland
Parties McFarlane v Quantum Chemicals Ltd
Summary UNJUSTIFIED DISMISSAL - Constructive dismissal - No written employment agreement - Personal relationship between applicant and respondent's manager ended - Manager became overly familiar, manipulative and bullying - Behaviour included cellphone texts and calls outside work hours - Applicant made it clear behaviour was inappropriate and unacceptable - Behaviour constituted breach of implied terms of employment - Reasonably foreseeable applicant would resign - Personal grievance - COUNTERCLAIM - BREACH OF CONTRACT - Alleged failure to give notice under employment agreement - Claim unsustainable because agreement unsigned - Claim for monies expended in training applicant - No contractual basis for claim and respondent received fruits of applicant's better trained labours - Claim for loss of profits caused by applicant overpaying GST to Inland Revenue, meaning funds unavailable for acquiring stock - Claim purely speculative - Claim for loss caused by overpayment to creditor, meaning funds unavailable to settle particular contract when exchange rate was lower - Employer could claim against employee for losses caused by negligence - However standard of care required of business manager different from that expected from accountant or person responsible for managing cashflow - Applicant made error but acted faithfully on basis of computer generated report - Loss incurred not foreseeable - Counterclaims dismissed - Business manager
Result Application granted ; Reimbursement of lost wages ($18,333.33)(4 months) ; Compensation for humiliation etc ($7,500) ; Counterclaim dismissed ; Costs reserved
Cases Cited Auckland Electric Power Board v Auckland Provincial District Local Authorities Officers IUOW [1994] 1 ERNZ 168; [1994] 2 NZLR 415;F v Attorney-General [1994] 2 ERNZ 62;Lister v Romford Ice & Cold Storage [1957] AC 555;Market Gardeners Ltd v Fairfield unreported, Goddard CJ, 31 July 1995, WEC 1/95
Number of Pages 8
PDF File Link: aa 155_05.pdf [pdf 64 KB]