| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 69/08 |
| Hearing date | 21 Jan 2008 |
| Determination date | 29 February 2008 |
| Member | Y S Oldfield |
| Representation | B Pownall (In person) ; J Fairbrother, D Steele |
| Location | Auckland |
| Parties | Pownall v Fairbrothers Industries Ltd |
| Summary | ARREARS OF HOLIDAY PAY - Parties negotiated settlement agreement when applicant’s employment terminated for redundancy - Applicant’s pay in lieu of notice paid in instalments after termination of employment due to respondent’s financial difficulties - Applicant claimed not paid outstanding holiday pay on termination of employment - Claimed 8 percent holiday pay on earnings up to termination date as well as on pay in lieu of notice - Respondent did not dispute obligation to pay outstanding holiday pay but argued only payable on wages up to termination date - Respondent argued because payment of pay in lieu of notice deferred until after end of employment not part of final pay - Also argued as settlement “full and final” applicant not entitled to claim 8 percent on pay in lieu of notice - Authority found respondent’s argument inconsistent and unsustainable - Found if holiday pay obligations remained at all, remained in entirety - As respondent conceded obligation to pay settlement agreement did not cover holiday pay - Authority found pay in lieu of notice gross earnings for purposes of calculation of holiday pay - Found employment agreement specifically required three months’ notice or pay in lieu of notice - Therefore payment in lieu of notice payment employer required to pay employee under employment agreement in terms of s14 Holidays Act 2003 (“HA”) - Authority compared what applicant paid with what should have been paid to determine if amount of holiday pay outstanding - As redundancy occurred part way through second year of employment Authority calculated holiday pay entitlements by applying s24 and s25 HA and totalling them as provided for in s26 HA - Authority found applicant paid less than should have been - Respondent to pay $1,094.53 arrears of holiday pay - General Manager |
| Result | Application granted ; Arrears of holiday pay ($1,094.53) ; No order for costs |
| Main Category | Arrears |
| Statutes | ERA s149;Holidays Act 2003 s14;Holidays Act 2003 s24;Holidays Act 2003 s24(2)(a);Holidays Act 2003 s25;Holidays Act 2003 s26;Holidays Act 2003 s26(b) |
| Number of Pages | 8 |
| PDF File Link: | aa 69_08.pdf [pdf 37 KB] |