| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 108/07 |
| Hearing date | 13 Apr 2007 |
| Determination date | 13 April 2007 |
| Member | L Robinson |
| Representation | A Drake & N Finn ; S Langton |
| Location | Auckland |
| Parties | McFarlane v Charlie's Trading Company Ltd |
| Summary | ARREARS OF WAGES AND HOLIDAY PAY - Applicant alleged bonus due and owing, - Bonus payable if applicant met key performance indicators (KPI's") - Applicant received bonus first year - Applicant claimed same bonus for subsequent year, but respondent declined payment - Bonus clause required parties to negotiate KPI's - Managing director ("MD") used results of performance review to measure bonus - Nothing prescribed about how KPI's applied to bonus entitlement - Respondent had prerogative to determine quantum according to agreed criteria - Applicant disagreed with measurement and made this clear to MD - MD elected to ignore applicant - Respondent's failure to communicate rejection of applicant's view not responsive or communicative, and contrary to duty of good faith and implied terms of employment - Inaction and failure to negotiate caused loss of opportunity - Authority commented on loss of chance principles - Entitled to compensation for loss of full year, and quarterly bonus entitlement - Parties to agree on quantum of quarterly bonus and holiday pay entitlement - Also claimed requirement to return company car before commenced annual leave unjustifiable - Entitled to car at all times as long as personal use was reasonable - Entitled to reimbursement for loss of use while on leave - RAISING PERSONAL GRIEVANCE - Alleged grievances related to discrimination, stress, and treatment during pregnancy raised out of time - No exceptional circumstances - Sales manager" |
| Result | Application granted ; Arrears of wages ($18,000)(Full year bonus) ; (Quarterly bonus to be calculated by parties) ; Loss of benefit ($2,000)(Car) ; Arrears of holiday pay (Quantum to be calculated by parties) ; Costs reserved |
| Main Category | Arrears |
| Cases Cited | Dorset v Chemcolour Industries (NZ) Ltd unreported, A Dumbleton, 8 April 2004, AA 117/04;Dorset v Chemcolour Industries (NZ) Ltd unreported, A Dumbleton, 2 June 2004, AA 117A/04;Gardner-Lee v B.O.C Ltd unreported, A Dumbleton, 8 March 2005, AA 86/05;Hemopo v South Pacific Tyres NZ Ltd and Amalgamated Workers Union of NZ Inc unreported, H Doyle, 27 July 2005, CA 102/05;Miller v Poulgrain [2005] 1 NZLR 66;Mortland v Mandalay Technologies Pty Ltd unreported, Y Oldfield, 23 February 2005, AA 67/05;Shilling v Kid Garrett [1977] 1 NZLR 243 |
| Number of Pages | 20 |
| PDF File Link: | aa 108_07.pdf [pdf 82 KB] |