| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | WA 54/08 |
| Hearing date | 20 Nov 2007 |
| Determination date | 01 May 2008 |
| Member | L Robinson |
| Representation | M Quigg ; D Alderslade |
| Location | Wellington |
| Parties | Watson v Microsoft New Zealand Ltd |
| Summary | DISPUTE - Whether applicant entitled to holiday pay in respect of bonus payments received during employment - Whether bonus payments discretionary or productivity/incentive-based payments respondent required to pay - Written agreements stated respondent had discretion to amend or terminate bonus schemes - Authority did not consider this prerogative the same as discretion whether or not to pay - Where plan in place, respondent could not decide not to pay - Applicant’s entitlement to bonus derived from position at respondent and participation in scheme not discretionary - Respondent required to make bonus payments as they were specified as component of remuneration in employment agreement - Authority did not agree that having reserved power of unilateral termination in respect of bonus schemes, respondent had unfettered power to do so - Actions subject to duty of good faith - Bonus payments part of applicant’s earnings for purposes of calculating annual leave entitlement - Major Account Manager |
| Result | Question answered in favour of applicant ; Costs reserved |
| Main Category | Dispute |
| Statutes | ERA s103A;Holidays Act 2003 s5;Holidays Act 2003 s8;Holidays Act 2003 s14(a)(iv);Holidays Act 2003 s14(b)(i);Holidays Act 2003 s21(2)(b);Holidays Act 2004 s24(2) |
| Cases Cited | Ross & Compass Group NZ Limited unreported, M Urlich, 28 November 2006, AA 361/06 |
| Number of Pages | 11 |
| PDF File Link: | wa 54_08.pdf [pdf 39 KB] |