| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 159/08 |
| Hearing date | 21 Apr 2008 |
| Determination date | 29 April 2008 |
| Member | A Dumbleton |
| Representation | M Nutsford ; L Campbell |
| Location | Auckland |
| Parties | Gibbons v Koves Plastic Industries Ltd |
| Summary | UNJUSTIFIED DISMISSAL – Applicant claimed unjustifiably dismissed for redundancy – Applicant met with respondent’s general manager (“H”) to discuss proposal to disestablish applicant’s position – Applicant notified position disestablished next day – Authority satisfied decision to disestablish applicant’s position made for genuine commercial reasons – Found respondent had sufficient grounds to justifiably dismiss applicant for reasons not related to conduct or performance – Applicant learned respondent engaged contractor (“G”) to perform similar work to applicant – Found G performed most of work applicant doing but under different remuneration arrangements – Authority found availability of G to perform work known to H prior to discussing possibility of redundancy with applicant – Found respondent failed to disclose to applicant knowledge of G’s availability as relevant in decision to dismiss – Found consultation with applicant not extensive enough to meet requirements of s4 Employment Relations Act 2000 – Found respondent failed to disclose considering proposal to engage G when met with applicant – Found likely respondent developed strong interest to engage G before meeting applicant – Found applicant should have been provided opportunity to comment on information before decision made to dismiss – Dismissal unjustified – Remedies – Found applicant’s entitlement to remedies should be fixed according to harm and loss suffered by failure to consult in good faith – Found no loss of wages following from breaches as likely applicant would not have accepted reduced role – Found lack of sensitivity aggravated unfair consultation process – Authority found $2,250 compensation appropriate – Authority rejected claim respondent unlawfully deducted amount from final pay – Costs – Respondent ordered to pay applicant $1,250 as costs – Finance and accounts administration |
| Result | Application granted ; Compensation for humiliation etc ($2,250) ; Costs in favour of applicant ($1,250) |
| Main Category | Personal Grievance |
| Statutes | ERA s103A;ERA s4;ERA s4(1A) |
| Cases Cited | Simpson Farms Ltd v Aberhart [2006] 1 ERNZ 825;G N Hale & Sons Ltd v Wellington Caretakers IUOW [1990] 2 NZILR 1079;New Zealand Fasteners Limited v Thwaites [2000] 1 ERNZ 739 |
| Number of Pages | 8 |
| PDF File Link: | aa 159_08.pdf [pdf 30 KB] |