Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 101/07
Hearing date 11 Jun 2007
Determination date 10 August 2007
Member P Montgomery
Representation P Brown ; R Ewen
Location Christchurch
Parties Burns & Ors v Reliance Transport Ltd
Other Parties Burns, Burns
Summary PRACTICE AND PROCEDURE – JURISDICTION – Applicants agreed to lodge consolidated personal grievance actions – Applicants claimed unjustifiably dismissed – Identity of employer preliminary issue – Respondent argued not party to any employment agreement with applicants – Argued applicants employed by third party (“BCT”) who utilised respondent’s goods service licence – Applicants claimed BCT trading name for division of respondent – Respondent held 50 percent shareholding in BCT and remaining shares held by third party – Authority concluded BCT registered company in own right – Applicants claimed BCT work invoiced through respondent which indicated BCT operating as subsidiary – Respondent argued not uncommon for associated businesses to utilise each others’ administration systems and personnel – Authority noted BCT faced considerable hurdles in establishing operations in region due to first applicant’s involvement in BCT – First applicant previously controlled two failed companies which left large number of regional community unpaid – Respondent argued result that regional business community reluctant to deal on credit basis with BCT – Argued pragmatic approach to make purchases for benefit of BCT through respondent – Authority found at time grievances raised applicants knew identity of employer to be BCT – Found attempt to involve respondent when extreme financial position of BCT became apparent – Authority satisfied on evidence provided BCT not merely trading name of respondent and was complete separate entity – Authority also satisfied applicants employees of BCT as no evidence of wages paid by respondent – Applicants failed to establish employment agreement existed with respondent – No jurisdiction
Result Application dismissed ; Orders accordingly ; Costs reserved
Main Category Jurisdiction
Number of Pages 5
PDF File Link: ca 101_07.pdf [pdf 21 KB]