Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 342/06
Hearing date 6 Nov 2006
Determination date 08 November 2006
Member V Campbell
Representation J Palmer (in person) ; R Mathers
Location Auckland
Parties Palmer v RNJ's Ltd
Summary UNJUSTIFIED DISMISSAL - UNJUSTIFIED DISADVANTAGE - Redundancy - Respondent's new business experienced real and significant downturn - After consultation, fair and reasonable employer would have concluded necessary to disestablish applicant's position and replace it with position with reduced hours - Applicant given letter with two options, accept reduced hours and work alone, or redundancy - Respondent had no problem with shop being closed for breaks - Applicant concerned if worked alone would work 40 hour week without breaks, but issue not raised with respondent - Respondent claimed prepared to discuss matter but applicant led him to believe letter not opened - Applicant left with impression had been advised of changes rather than consulted - Failure to discuss alternatives to redundancy, provide further information regarding required reductions, or give opportunity to discuss matter breached applicant's employment agreement and s4 Employment Relations Act 2000 - Genuine redundancy so was unjustified disadvantage, not unjustified dismissal - Remedies - Applicant did not take opportunity to discuss letter with respondent, but was not conduct that contributed to personal grievance - Although neither party represented at investigation meeting, correspondence indicated applicant had received legal advice - Length of service three months one week - Manager
Result Application dismissed (Unjustified dismissal) ; Application granted (Unjustified disadvantage) ; Compensation for humiliation etc ($2,500) ; Costs reserved
Statutes ERA s4;ERA s4(1A);ERA s103A
Cases Cited Communication & Energy Workers Union Inc v Telecom NZ Ltd [1993] 2 ERNZ 429;GN Hale & Sons Ltd v Wellington etc Caretakers etc IUOW [1990] 2 NZILR 1079 ; [1991] 1 NZLR 151 ; (1990) 3 NZELC 97,985 ; (1990) ERNZ Sel Cas 843;Simpsons Farms Ltd v Aberhart [2006] 1 ERNZ 825;Staykov v Cap Gemini Ernst & Young New Zealand Limited unreported, Travis J, 20;April 2005, AC 18/05;Wellington International Airport Ltd v Air New Zealand Ltd [1993] 1 NZLR 671
Number of Pages 6
PDF File Link: aa 342_06.pdf [pdf 41 KB]