| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 445/05 |
| Hearing date | 31 Oct 2005 |
| Determination date | 18 November 2005 |
| Member | R Arthur |
| Representation | M Matthew ; B (in person) |
| Location | Auckland |
| Parties | V v B |
| Summary | RECOVERY OF WAGES - Applicant sought to recover wages allegedly overpaid to respondent - Applicant alleged payment made to respondent under s149 settlement on 22 July mistakenly again paid respondent's wages for part of July - Authority had jurisdiction to determine employment relationship problem - Combined effect of wage payment on 15 July and payment made under settlement agreement was that respondent was paid twice for period 1 July to 22 July and paid for four extra days - Applicant entitled to recover wages paid on 15 July - Criteria for relief under s6 Contractual Mistakes Act 1977 met - Applicant also erred in paying insufficient wages for period specified in settlement agreement, calculating outstanding holiday pay due incorrectly and failing to pay respondent's July expenses as promised - Repayment amount reduced to take those into account - Mistakes in payment were by applicant's own hand and could have been avoided with reasonable care - Grant of relief to applicant limited to 80 per cent of amount owed - COUNTERCLAIM - PENALTY - Settlement recorded by mediator provided applicant would supply respondent with written reference - Reference withheld in exchange for refund of overpayment - Breach occurred in period of paid notice and Authority could not properly assess how much absence of acceptable reference extended job search beyond paid notice period - Claim for legal expenses on reference issue granted - Settlement agreement was employment agreement and party breaching employment agreement liable to penalty under s134 ERA - Settlement agreement also an agreement certified under s149 ERA and s149(4) ERA provided that person who breached agreed term of settlement liable to penalty - Applicant ordered to pay penalty of $1,000 under ss134 and 149(4) ERA - Half each payable to Crown and respondent - Order prohibiting publication of names of parties and witnesses |
| Result | Overpayment of wages ($3,385.58)(to applicant) ; Reimbursement of legal expenses ($239.63)(to respondent) ; Penalty ($1,000)($500 payable to Crown)($500 payable to applicant) ; Costs reserved |
| Statutes | Contractual Mistakes Act 1977 s6;Contractual Mistakes Act 1977 s7;ERA s134;ERA s149;ERA s149(3);ERA s149(4);ERA s162;ERA Second Schedule cl10(1);Judicature Act 1908 s94B |
| Number of Pages | 8 |
| PDF File Link: | aa 445_05.pdf [pdf 59 KB] |