| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 358A/05 |
| Hearing date | 8 Sep 2005 |
| Determination date | 14 September 2005 |
| Member | J Scott |
| Representation | B Edwards ; no appearance |
| Location | Auckland |
| Parties | Johnstone v Morrisson Bar Ltd |
| Summary | UNJUSTIFIED DISMISSAL - Constructive dismissal - No appearance by respondent - Applicant's evidence accepted - New owner of respondent (N") provided no working capital despite promises - Applicant's workload increased as staff, contractors and cleaners failed to turn up due to non payment - Applicant frequently had to pay suppliers himself to keep business open - Salary not paid on time causing applicant to incur bank penalties - N began to introduce and use illegal drugs on premises and proposed to obtain crystal methamphetamine to sell within club - Applicant gave notice of resignation on 19 March 2005 to take effect on 28 March - N changed locks on 23 March and told applicant to leave and not return after accusing him of stealing money - Whether constructive dismissal - On face of it applicant accepted respondent's repeated breaches by continuing employment - However length of time taken for applicant to accept breaches as repudiation of contract was because of enormous emotional and intellectual investment in business - Ongoing nature and escalating severity of breaches, bad faith and illegal conduct, meant worry and stress became intolerable - No choice but to resign - Constructive dismissal - Aggravating feature was summary dismissal during notice period - Remedies - Applicant sought to recover bank penalties - Personal grievance compensation not limited to loss of contractually defined income - Respondent directed to reimburse bank penalties - Bar/night club manager" |
| Result | Application granted ; Reimbursement of lost wages ($27,461.54)(25 weeks) ; Reimbursement of other money lost ($1,687.50)(bank penalties) ; Compensation for humiliation ($12,500) ; Costs reserved |
| Statutes | ERA s123(1)(b) |
| Cases Cited | Auckland Shop Employees IUOW v Woolworths (NZ) Ltd [1985] ACJ 963;Hjorth v Onesource Ltd [2005] 1 ERNZ 618;NZ Amalgamated Engineering etc IUOW v Ritchies Transport Holdings Limited [1991] 2 ERNZ 267 |
| Number of Pages | 6 |
| PDF File Link: | aa 358a_05.pdf [pdf 34 KB] |