| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 264/06 |
| Hearing date | 27 Jun 2006 |
| Determination date | 11 August 2006 |
| Member | J Wilson |
| Representation | Kristina Anderson ; Tom Skinner |
| Location | Auckland |
| Parties | Thompson v HJ Cooper Ltd |
| Summary | UNJUSTIFIED DISMISSAL - Redundancy - Applicant called to meeting and handed letter making him redundant - Alleged redundancy not genuine and procedurally unfair - No consultation - Respondent adamant financial position made changes imperative and performance issues had no bearing on decision - Argued restructuring and creating redundancies part of managerial prerogative - Applicant did not accept financial situation as dire as claimed - Alternatively, argued even if was, respondent had sufficient time for consultation as knew of situation and redundancy before meeting - No evidence redundancies had to be made in haste - Fair and reasonable employer, acting in good faith, would have given employee opportunity to propose alternatives before decision - Applicant entitled to courtesy of discussion regarding alternative positions and consultation as to how transition out of respondent could be handled to minimise stress and trauma - Merely indicating in letter of termination assistance available not sufficient to fulfil obligations of fair and reasonable treatment - Had respondent followed proper process of consultation would have been open to it to conclude applicant's position should be disestablished - Genuine redundancy - Procedurally unfair - Dismissal unjustified - Length of service one year seven months - Production engineering manager |
| Result | Application granted ; Compensation for humiliation etc ($12,500) ; Costs reserved |
| Statutes | ERA s4;ERA s4(1A) |
| Cases Cited | Air New Zealand Ltd v Hudson (2006) 3 NZELR 155;Clemow v McKechnie Pacific (NZ) Ltd [1998] 1 ERNZ 36;GN Hale & Sons Ltd v Wellington etc Caretakers etc IUOW [1990] 2 NZILR 1079; (1990) ERNZ Sel Cas 843;New Zealand Fasteners Stainless Ltd v Thwaites [2000] 1 ERNZ 739 |
| Number of Pages | 6 |
| PDF File Link: | aa 264_06.pdf [pdf 37 KB] |