| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 147/06 |
| Hearing date | 2 Mar 2006 |
| Determination date | 03 May 2006 |
| Member | A Dumbleton |
| Representation | M Clark ; AM McInally |
| Location | Auckland |
| Parties | Siemens Energy Services Ltd v East |
| Summary | ARREARS OF WAGES AND HOLIDAY PAY - RECOVERY OF MONIES - Respondent resigned - Applicant alleged owed monies for training respondent had completed while employed - Respondent counterclaimed for arrears of wages and holiday pay owing - Written arrangements between parties poorly drafted and referred to monies spent on training as a grant" and a "loan" - Applicant sought to recover full $18,000 - Would be unjust and inequitable to enforce clause that way - Must be regarded as penalty provision - Respondent had served 1/3rd of 24 month period over which loan to be written off - Also, applicant breached employment agreement and Wages Protection Act 1983 when it took wages and holiday pay due on termination without consent - Deduction illegal - Satisfied respondent knew would have to pay back loan - No exploitation of respondent, deliberate or otherwise - Respondent liable to pay back $18,000 less $6,000 rebated during his eight months' service before employment terminated - No award of interest made on that amount - However, applicant liable to pay respondent holiday pay and wages due and owing plus interest - After setting off amounts respondent to pay applicant $6,864 - Leave reserved for respondent to ask Authority to investigate and determine whether paid correctly after finished training - Foreman/Live line person" |
| Result | Orders accordingly ; Respondent to pay applicant ($6,864.63) ; No order for costs |
| Statutes | Wages Protection Act 1983 |
| Cases Cited | Amaltal Fishing Co Ltd v Morunga [2002] 1 ERNZ 692;NZ Dairy Workers Union Inc v New Zealand Milk Products Ltd [2004] 1 ERNZ 376;Pharmacy Care Systems Ltd v Attorney-General unreported, McGrath J, Hammond J, O'Regan J, 16 August 2004, CA 198/03 |
| Number of Pages | 6 |
| PDF File Link: | aa 147_06.pdf [pdf 34 KB] |