| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 119/06 |
| Hearing date | 7 Mar 2006 |
| Determination date | 10 August 2006 |
| Member | P Montgomery |
| Representation | Penny Swarbrick ; Raewyn Gibson |
| Location | Christchurch |
| Parties | Wilkinson v Tait Electronics Ltd |
| Summary | UNJUSTIFIED DISMISSAL - Redundancy - Whether redundancy genuine - Applicant based in Singapore - Position disestablished when Singapore/Thailand operation restructured - Alleged redundancy not genuine, no consultation and respondent did not act in good faith - Respondent denied allegation no preamble to restructuring - Contended restructuring decisions provisional or preliminary in nature and were followed by efforts to establish process for engaging affected staff - Applicant claimed Regional Manager (RM") wanted to relocate to Singapore under guise of correcting business when real motive was to continue personal relationship - Operation's financial position ample justification for review and establishing proposals to remedy situation - CEO asked RM to realign Singapore office and made final restructuring decision - Authority accepted CEO unaware of RM's hidden motivation - Redundancy justified and based on genuine economic reasons - Disestablishment of applicant's role not predetermined - Consultation about new structure but not about loss of position - Deprived applicant of opportunity to perhaps avoid dismissal - Dismissal unjustified - Remedies - Authority mindful of exemplary manner in which company conducted itself following dismissal - Applicant sought compensation for alterations made to rental home - Applicant took view would be employed for three years, but employment agreement made clear subject to conditions - Also, Authority's jurisdiction restricted to providing compensation only in terms of s123 Employment Relations Act 2000 - Applicant elected to remain in Singapore - Entitlement to repatriation allowance lapsed at expiry of notice period - Effect of dismissal very significant, particularly as expatriate employee and recent arrival of child - Humiliation occasioned by wife having to end parental leave early also considered - Length of service one year - Country Manager" |
| Result | Application granted ; Compensation for humiliation etc ($15,000) ; Costs reserved |
| Statutes | ERA s123 |
| Number of Pages | 6 |
| PDF File Link: | ca 119_06.pdf [pdf 35 KB] |