| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 45/02 |
| Determination date | 01 March 2002 |
| Member | Y S Oldfield |
| Representation | B Spong ; S Mechen |
| Location | Auckland |
| Parties | Rundle v Nulon Ltd |
| Summary | UNJUSTIFIED DISADVANTAGE - Alleged refusal to honour promise to redeem or purchase shares arising from employment contract - Compliance with employment contract sought - Shares in company sold to fellow director/shareholder - Alleged agreement to buy back shares at some time in future - Offered employment contract with time limit on buy back option - Refused to sign contract - No express agreement that buy back arrangement formed part of terms of employment - Agreement amounted to private matter between two shareholders - Not an employment relationship problem - UNJUSTIFIED DISMISSAL - Breakdown in relationship - Dismissed when no agreement on buy back arrangement met - Normal requirements of procedural fairness not met - Complete absence of fair procedure rendered dismissal unjustified - Failed to take every opportunity to mitigate loss - Not appropriate to award reimbursement of lost wages - CONSENT ORDER - Agreement reached that arrears of holiday pay due and owing - Agreement recorded by consent - Appropriate that interest be paid on sum - Company manager |
| Result | Application granted in part ; Compensation for humiliation etc ($5,000) ; Arrears of holiday pay ($9,391.88)(By consent) ; Interest (5 percent) ; Costs reserved |
| Cases Cited | Crump v Tahuna Farms unreported, K Johnston, 3 April 2001, WT 23/01;Kendal v A Mark Publishing NZ Ltd unreported, Palmer J, 18 July 1997, CEC 19/97;Labour Inspector (Scullin) v James t/a Book Inn unreported, JL Scott, 9 May 1996, AT 132/96;Walker Corporation Ltd v O'Sullivan [1998] 1 ERNZ 256 |
| Number of Pages | 10 |
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