Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 215/05
Determination date 09 June 2005
Member R A Monaghan
Representation R Oldham ; B Spong
Location Auckland
Parties Tunnicliffe v Le' Kreme Ltd
Summary UNJUSTIFIED DISMISSAL - Respondent's owners sold 50% shareholding to third party - Third party became manager - Applicant misunderstood nature of transaction and believed business sold - Colleague said one therapist's position to disappear - Applicant assumed employment with respondent at end - Believed new manager not party to employment relationship - Matters not clarified by meeting with new manager about future of employment - At end of meeting applicant believed no job with respondent or new manager - Manager believed applicant resigned by leaving meeting in acrimonious circumstances - Applicant subsequently twice raised belief that employment ended due to technical redundancy - Belief not refuted by respondent - No redundancy - Belief that employment already over and new manager not party to employment relationship inconsistent with allegation that new manager's conduct at meeting repudiated employment relationship - Failure to adequately explain sale in first place or take subsequent opportunities to correct misunderstandings meant respondent not entitled to treat applicant's departure from meeting as resignation - Unjustified dismissal - BREACH OF CONTRACT - PENALTY - Applicant sought damages for breach of good faith and penalty for breach of implied duty to act reasonably and fairly towards applicant - Events did not amount to breach of either duty - Respondent's shortcomings taken into account in finding of unjustified dismissal - Beauty therapist
Result Application granted (Unjustified dismissal) ; Applications dismissed (Damages and penalty) ; Reimbursement of lost wages ($3,066.97 gross)(13 weeks) ; Loss of benefit ($192.53 gross)(Commission) ; Compensation for humiliation etc ($4,000) ; Costs reserved
Number of Pages 6
PDF File Link: aa 215_05.pdf [pdf 38 KB]