| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 98/08 |
| Hearing date | 13 Sep 2007 |
| Determination date | 17 March 2008 |
| Member | A Dumbleton |
| Representation | K Morrison ; O Paulsen |
| Location | Auckland |
| Parties | Varma v Burnard International Ltd |
| Summary | ARREARS OF WAGES – Applicant claimed resignation amounted to constructive dismissal following respondent’s failure to pay incentive payments – Authority satisfied claim for arrears of wages – Applicant sought payment of outstanding incentives, interest, and compensation – Authority found major issue in resolving dispute was agreed criteria applicant to attain before entitled to incentive payments – Applicant claimed entitled to incentive payments after received letter from respondent stating simply had to achieve agreed criteria – Respondent argued agreed criteria stipulated in existing bonus scheme – Respondent argued applicant shown bonus scheme, which applicant denied – Applicant acknowledged did not know agreed criteria but claimed told by manager what target to achieve per annum – Applicant and former employee gave evidence that respondent had dysfunctional management and systems – Authority accepted respondent spoke to applicant about bonus scheme and agreed criteria contained in scheme – Authority found agreed criteria taken as referring to agreement already reached at current date not future date – Authority found applicant did not qualify for any incentive payments under bonus scheme – Found no contractual basis to have been paid incentive – Found achievement of “reasonable profit” too uncertain a target to be enforceable as claim under Employment Relations Act 2000 – Found applicant’s agreement to fully and finally settle all claims against respondent prevented constructive dismissal claim – Authority concluded claim for personal grievance also excluded because alleged constructive dismissal derived solely from dispute about interpretation of contract – Found applicant not entitled to any orders |
| Result | Application dismissed ; Costs reserved |
| Main Category | Arrears |
| Statutes | ERA s161(2);ERA s123;ERA s103(3) |
| Number of Pages | 7 |
| PDF File Link: | aa 98_08.pdf [pdf 27 KB] |