Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 57/07
Hearing date 13 Feb 2007
Determination date 25 May 2007
Member H Doyle
Representation E Parker ; N McPhail
Location Kaikoura
Parties Turner v Pacifica Seafoods (Christchurch) Ltd
Summary DISPUTE – GOOD FAITH – Entitlement to notice of termination and redundancy payment – Employment status - Respondent argued applicant’s status changed to casual during employment due to downturn in business - Employment agreement stated days of work “as required” but also contained provisions inconsistent with casual employment – Applicant did not recall restructuring process and or consider himself casual employee – Regular work pattern and clear expectation of ongoing employment – Applicant permanent employee – Employment terminated one day after advised business sold – Respondent claimed sale unplanned and complete confidentiality required for commercial reasons – Notice given to applicant not reasonable, however, Authority accepted applicant not entitled to monetary compensation as on unpaid leave due to injury – Applicant also sought redundancy compensation - Respondent argued no contractual entitlement to payment – Authority unable to fix new terms of employment – However, as applicant’s redundancy entitlement assessed on mistaken basis he was casual employee, in good faith, respondent should reassess entitlements – PENALTY - In circumstances where respondent unable to give employees advance warning of sale, discussion about entitlements even more important in terms of good faith process – However, degree of seriousness required to warrant penalty not reached – Good faith issues regarding absence of consultation and notice should form part of respondent’s reassessment of entitlements – ARREARS OF HOLIDAY PAY – Except for first week ACC compensation payable by employer, no payments received under Injury Prevention, Rehabilitation and Compensation Act 2001 to be taken into account when calculating holiday pay – Public holidays that fell during unpaid leave would not have been otherwise working day as applicant not available to work – Calculation referred to Labour Inspector - Leave reserved on issues relating to payment of sick leave
Result Questions answered ; Orders accordingly ; Costs reserved
Main Category Dispute
Statutes ERA s4(m);ERA s4(1B);ERA s69N;ERA s161(2);ERA Part 6A subpart 2;Employment Relations Amendment Act (No 2) 2004;Holidays Act 2003 s14;Injury Prevention, Rehabilitation and Compensation Act 2001
Cases Cited Aoraki Corporation Ltd v McGavin [1998] 1 ERNZ 601; [1998] 3 NZLR 276;Charta Packaging Ltd v Howard [2002] 1 ERNZ 10 (CA);Lewis v Greene [2004] 2 ERNZ 55
Number of Pages 16
PDF File Link: ca 57_07.pdf [pdf 58 KB]