| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 8A/08 |
| Hearing date | 14 Feb 2008 |
| Determination date | 28 April 2008 |
| Member | P Montgomery |
| Representation | P Shamy, T McKenzie ; P Shaw |
| Location | Christchurch |
| Parties | Cox v Allied Telesis Labs Ltd |
| Summary | DISPUTE - Applicant accepted redundancy package based on individual employment agreement (“IEA”) when respondent’s Australian operation closed – Applicant offered ongoing employment with respondent’s New Zealand operation – Letter of offer included redundancy provision for three weeks’ salary per year of service and nullified previous redundancy package – Applicant accepted offer and signed new IEA – IEA replaced all previous agreements and did not contain redundancy clause outlined in letter of offer – Applicant unconcerned as redundancy package detailed in letter of offer applicant had signed – Approximately eight years later applicant offered new IEA containing explicit clause that no redundancy compensation payable – Applicant refused to sign IEA - Applicant made redundant and application for alternative position unsuccessful – Applicant refused respondent’s managing director’s offer of alternative redundancy package as believed entitled to redundancy package contained in letter – Authority found respondent’s letter to applicant clearly established entitlement to redundancy package – Authority to determine whether having given explicit undertaking respondent entitled to withdraw undertaking without explicit notice – Authority found explicit term in contract cannot be overturned by omission in later contract – Found good faith required explicit advice be explicitly excluded in later contract or by written agreement – Found applicant’s refusal to sign third IEA evidence applicant relied on term in letter – Authority found applicant entitled to redundancy compensation as set out in letter – UNJUSTIFIED DISADVANTAGE – Authority found evidence did not establish personal grievance – Remedies – Respondent ordered to comply with terms of redundancy payment set out in letter – Regional accountant |
| Result | Questions answered in favour of applicant ; Application dismissed (Disadvantage) ; Costs reserved |
| Main Category | Dispute |
| Statutes | ERA s11 Schedule 2 |
| Number of Pages | 11 |
| PDF File Link: | ca 8a_08.pdf [pdf 45 KB] |