Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 120/06
Hearing date 27 Oct 2005 - 3 Feb 2006 (3 days)
Determination date 07 April 2006
Member K J Anderson
Representation G Wilkin ; A Hope
Location Auckland
Parties Dickson v New Zealand Grazing Company Ltd
Summary UNJUSTIFIED DISMISSAL – UNJUSTIFIED DISADVANTAGE - Serious misconduct – Summary dismissal – Applicant failed to inform employer that former employee had set up competing company and that clients of respondent had transferred business to new company – Dismissed following disciplinary meeting – Applicant’s denials of knowledge about why clients failed to re-sign with respondent not credible given close friendship with former employee and certain evidence uncovered during respondent’s investigation – Respondent entitled to conclude applicant in possession of knowledge for some time and failed to inform respondent – Unclear whether withholding information was deliberate – However, applicant had duty to inform respondent of reasons for loss of business – Failure to inform was action or inaction that significantly undermined trust and confidence in employment relationship – Breach of duty of fidelity and loyalty owed to respondent - Procedural flaws not such as to render dismissal unjustified or warrant finding of unjustified disadvantage – Dismissal justified – No unjustified disadvantage - BREACH OF CONTRACT – Counterclaim by respondent for damages for loss of income - Causal link between applicant’s breach and respondent’s loss of income not sufficiently certain – Damages claim declined – Length of service in final role with respondent one year five months – Service manager
Result Application dismissed ; Counterclaim dismissed ; Costs reserved
Statutes Employment Relations Amendment Act (No 2) 2004 s1A;ERA s4
Cases Cited Big Save Furniture v Bridge [1994] 2 ERNZ 507;Chief Executive of the Ministry of Maori Development v Travers-Jones [2003] 1 ERNZ 174;Tisco v Communication & Energy Workers Union [1993] 2 ERNZ 779
Number of Pages 9
PDF File Link: aa 120_06.pdf [pdf 62 KB]