| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 125/06 |
| Hearing date | 28 Feb 2006 |
| Determination date | 11 April 2006 |
| Member | V Campbell |
| Representation | P Officer ; no appearance |
| Location | Auckland |
| Parties | LJS Employment Ltd v Matthews |
| Summary | BREACH OF CONTRACT – Application for recovery of training bond and one month’s pay in lieu of notice – No appearance for respondent - Employment agreement required forfeiture of one month’s pay if correct notice not given - Respondent resigned on one month’s notice – Worked part of notice period then failed to return to work – No explanation for absence – Forfeiture clause effective as genuine pre-estimate of loss in absence of proper notice – Applicable even though clause contemplated situation where no notice given at all – However, recovery not to be out of proportion with loss actually suffered – Fair to require payment of one month’s notice less days actually worked during notice period – Amount owing to be offset by holiday pay withheld by applicant in breach of Wages Protection Act 1983 (“WPA”) – Normal on-the-job training received by respondent standard part of employing new staff - Training bond not recoverable as amounted to “premium” payable for employment of worker prohibited by WPA s12A – Fish and chip shop trainee manager |
| Result | Application granted (Payment in lieu of notice) ; Application dismissed (Training bond) ; Damages ($1,218.78)(14 days wages less $167.22 holiday pay withheld by applicant) ; No order for costs ; Disbursements in favour of applicant ($70)(Filing fee) |
| Statutes | ERA Second Schedule;Wages Protection Act 1983 s4;Wages Protection Act 1983 s5;Wages Protection Act 1983 s12A |
| Cases Cited | Mehta v Elliot (Labour Inspector) [2003] 1 ERNZ 451;Ozturk v Gultekin (t/a Halikarnas Restaurant) [2004] 1 ERNZ 572;Sears v A-G (in respect of the Controller and Auditor-General, Audit Department) [1994] 2 ERNZ 39 |
| Number of Pages | 6 |
| PDF File Link: | aa 125_06.pdf [pdf 24 KB] |