| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 305/05 |
| Hearing date | 5 Aug 2005 |
| Determination date | 15 August 2005 |
| Member | A Dumbleton |
| Representation | C Patterson ; J Roberts, A Flexman |
| Location | Auckland |
| Parties | Axiom Rolle PRP Valuation Services Ltd v Kapadia |
| Summary | BREACH OF CONTRACT - Alleged breach of express and implied terms of confidentiality and fidelity - Respondent alleged never employed by applicant - Authority to determine certain issues at parties' request before return to mediation - Previous employer sold business to applicant - Agreement to transfer all existing employees - Mistaken belief by applicant that assignment of employment automatically effective even without consent of employees - Respondent uncertain about employment status - Requests for written confirmation of employment not met until eight days after previous employer ceased trading - Attempts by respondent to secure particular franchise on behalf of own company - Dismissed by applicant - Employment relationship existed from time applicant issued written confirmation of employment to respondent - Meeting of minds despite fact that confirmation technically legally ineffective as purported to create employment agreement by unilateral declaration - Until confirmation no obligation owed to applicant and respondent lawfully able to engage in activities which may have harmed applicant's business interests - Once employment relationship formed not permissible for respondent to undermine any opportunity in applicant's line of business that applicant may have wished to take up - Attempts to secure franchise for own company breached duty of fidelity - Likely breach of duty of confidentiality through misuse of information in compiling business plan for own company - Further evidence needed on that issue - Investigation suspended for return to mediation - Real estate agent/office manager |
| Result | Questions answered ; Investigation suspended pending further mediation ; Costs reserved |
| Statutes | ERA s65;ERA s69O |
| Number of Pages | 8 |
| PDF File Link: | aa 305_05.pdf [pdf 44 KB] |