| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | WA 125/05 |
| Hearing date | 5 Jul 2005 |
| Determination date | 22 July 2005 |
| Member | P R Stapp |
| Representation | F Lear ; D Frampton |
| Location | Wellington |
| Parties | Butler and Anor v Terson Industries Ltd and Anor |
| Other Parties | Terson Industries Ltd, Butler |
| Summary | ARREARS OF WAGES – Terson Industries (“T”) withheld wages for alleged failure to provide one months notice – Fixed term agreement – Near end of agreement T sought to negotiate new agreement since reason for fixed term no longer applicable – Four days before end of fixed term Butler (“B”) advised T he would not be renewing the agreement and last day would be final day of fixed term – T requested him to work out the one month notice period required by agreement – Employment Relations Act 2000 s66(4) & 66(5) as amended by Amendment Act applied – Whether B required to give one months notice where the reasons for the fixed term were no longer applicable – Whether deduction of wages for failure to give notice authorised – Agreement ended by expiry of fixed term – Expiry date of agreement continued to apply notwithstanding the reasons for the fixed term no longer applied – B entitled to rely on expiry to end employment relationship without giving notice – Not entitled to withhold wages – Arrears of wages due and owing - PENALTY – B sought penalty for breach – No deliberate and wilful or intentional breach to deny B money he should have been paid – Entitled to interest - BREACH OF CONTRACT - Alleged B did not act in good faith to negotiate and give notice under terms of agreement – Terms in agreement permissive – B not required to negotiate – Entitled to rely on expiry date – Claim dismissed |
| Result | Application granted (Arrears of wages)($3,373.01) ; Interest (7 percent) ; Application dismissed (Penalty) ; Application dismissed (Damages) ; Costs reserved |
| Statutes | ERA s66(4);ERA s66(5) |
| Number of Pages | 7 |
| PDF File Link: | wa 125_05.pdf [pdf 34 KB] |