| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 77/07 |
| Hearing date | 17 Apr 2007 |
| Determination date | 10 July 2007 |
| Member | H Doyle |
| Representation | M Withers ; T McGinn |
| Location | Christchurch |
| Parties | Reedy v Multi Media Communications Ltd |
| Summary | UNJUSTIFIED DISMISSAL – Redundancy – Applicant unaware of respondent’s financial difficulties – Respondent called applicant to meeting and indicated redundancy likely – Insufficient information presented to give applicant real opportunity to respond – Received termination letter two day later and told to work out notice – One week into notice period director agreed to move last day of work forward to that day - Following day applicant became shareholder in competitor – Other director unhappy applicant not working out notice and advised him last day of employment remained the same – Redundancy genuine and Authority accepted situation urgent - However consultation inadequate and respondent did not make clear to applicant how would select employee to remain in caretaker role – Dismissal unjustified – Remedies – Authority not satisfied applicant realistically lost chance to be selected for caretaker role – GOOD FAITH - Counterclaim – Respondent claimed applicant breached duty of good faith and duty of fidelity – Alleged applicant did not disclose new business interests or plans to work for competitor when asked for payment in lieu of notice – Authority not satisfied applicant involved with competitor before agreement to end notice early – Failure to disclose subsequent interest in competitor did not breach good faith or fidelity – On balance of probabilities applicant did not work for competitor during notice period - No breach of duty - Respondent’s financial records prohibited from publication - Sales |
| Result | Application granted ; Compensation for humiliation etc ($4,000) ; Counter claim dismissed ; Costs reserved |
| Main Category | Personal Grievance |
| Statutes | ERA s4;ERA s4(1A);ERA s4(1A)(c);ERA s103A;ERA Second Schedule cl10(1) |
| Cases Cited | Marsden Providors (1988) Ltd v Cotterill (1989) 2 NZELC 97,094;New Zealand Grazing Company Ltd v Fraser-Jones and Anor unreported, V Campbell, 16 November 2005, AA 441/05;Northern Amalgamated Workers Union Incorporated v Gardner unreported, Palmer J, 18 October 1996, WEC 69/96;Schilling v Kidd Garrett Ltd [1977] 1 NZLR 243;TISCO Ltd v Communication & Energy Workers Union [1993] 2 ERNZ 779 |
| Number of Pages | 14 |
| PDF File Link: | ca 77_07.pdf [pdf 53 KB] |