| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | WA 1/06 |
| Hearing date | 8 Dec 2005 |
| Determination date | 09 January 2006 |
| Member | D Asher |
| Representation | P Drummond ; J Gibbs |
| Location | Palmerston North |
| Parties | Carter v PAE (New Zealand) Ltd |
| Summary | DISPUTE - Interpretation of employment agreement - Agreement provided that applicant would receive one-off bonus on successful retention by respondent of certain existing contracts at retender in 2005 - This subject to achieving minimum five percent profit margin - Agreement also provided that if applicant was made redundant before a certain date, he would still be entitled to payment provided criteria for bonus were met - Respondent successfully retendered for contracts and tender provided for minimum five percent profit margin - Applicant later made redundant - Alleged he was entitled to bonus - Parties' intention was not that payment would be made on date of successful retender and by way of predictive profit - Intention to pay bonus subject to meeting specified criteria - This made clear by wording that payment subject to" achieving five percent profit margin - Parties clearly intended that period of time required by which to measure actuality, rather than predictive outcome - Applicant not entitled to bonus on date of retender - Parties had committed themselves, on good faith basis, to measure actual profit at time it was possible to measure actual profit" |
| Result | Application dismissed ; Costs reserved |
| Cases Cited | Toll NZ Consolidated Ltd v Rail & Maritime Transport Union Inc & Ors [2004] 1 ERNZ 392 |
| Number of Pages | 8 |
| PDF File Link: | wa 1_06.pdf [pdf 34 KB] |