Restrictions OK
Jurisdiction Employment Relations Authority - Wellington
Reference No WA 9/01
Determination date 16 March 2001
Member D Asher
Representation A Scott-Howman ; J Chesterman
Location Wellington
Parties Wood v Mobil Oil New Zealand Ltd
Summary UNJUSTIFIED DISMISSAL - Redundancy - Constructive dismissal - Respondent merged with new company - Redundancy was to be paid if suitable alternative employment not offered - Applicant's position ceased to exist - Appointed to new position - Loss of responsibility - Lesser scope of duties - Undertook new duties for 2 months on without prejudice basis then resigned - Whether a sufficient difference between positions to break essential continuity of employment - Objective test - Considered nature and terms of each position and characteristics of applicant - Fair and reasonable employer would have accepted that new position amounted to demotion - Not a suitable alternative - Applicant's position redundant - Redundancy compensation due - Respondent acted in good faith - Getting the process wrong did not amount to bad faith - Tele-sales representative
Result Application granted ; Redundancy compensation (To be determined by parties' contractual formula) ; Compensation for humiliation etc ($5,000) ; Costs reserved
Statutes ERA s65
Cases Cited Carter Holt Harvey Ltd v Wallis [1998] 3 ERNZ 984;Sanson v Auckland Regional Council [1999] 1 ERNZ 708
Number of Pages 10
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