| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 234/06 |
| Hearing date | 29 Jun 2006 |
| Determination date | 07 July 2006 |
| Member | R Arthur |
| Representation | J Armstrong ; M Ryan |
| Location | Auckland |
| Parties | Kindercare Learning Centres Ltd v Stratful |
| Summary | COMPLIANCE ORDER - Applicant paid respondent’s training course fees of $12,565 – Employment agreement provided for gradual repayment of fees with 70 cents credited for each hour of service or, if applicant left job, reimbursement of any outstanding amount – Employment relationship ended and applicant sought order requiring respondent to pay balance owed – Summary judgement proceedings in District Court stayed while matter in employment jurisdiction – Respondent alleged reimbursement clause unenforceable because it amounted to restraint of trade, was harsh and oppressive, and applicant had not disclosed ownership connection with course provider – Reimbursement clause did not restrain respondent from leaving job or prevent her carrying on chosen occupation after parties’ relationship ended – Respondent not charged interest and no suggestion not free to repay loan with voluntary payments – Agreement was not oppressive or unjustly burdensome, it was considerably more favourable than reasonable commercial practice – No evidence to suggest applicant misled or deceived respondent about nature of relationship with training provider, or that course of lesser value - Respondent claimed applicant unable to enforce reimbursement clause because of circumstances in which employment relationship ended – Mediated settlement agreement between parties stated respondent resigned – Respondent not entitled to allege something different to support argument for not repaying bond – Bond agreement between parties enforceable – Respondent ordered to pay outstanding amount to applicant – No interest awarded on amount owed as claim appeared to be afterthought and applicant would not have received interest if respondent still employed – Kindergarten teacher |
| Result | Application granted ; Compliance ordered ; Costs reserved |
| Statutes | Credit Contracts Act 1981;ERA s4;ERA s137;ERA s149;ERA Second Schedule cl11;Wages Protection Act 1983 s12A |
| Cases Cited | Grey Advertising (New Zealand) Ltd v Marinkovich [1999] 2 ERNZ 844;Rankin v Attorney General in respect of the State Services Commissioner [2001] ERNZ 476;Scally v Southern Health and Social Services Board [1991] 4 All ER 563;Tucker Wool Processors Ltd v Harrison [1999] 1 ERNZ 894 |
| Number of Pages | 7 |
| PDF File Link: | aa 234_06.pdf [pdf 90 KB] |