Restrictions OK
Jurisdiction Employment Relations Authority - Wellington
Reference No WA 55/08
Hearing date 17 Apr 2008
Determination date 02 May 2008
Member D Asher
Representation J A Burney ; D Frampton
Location Wellington
Parties Loder v Terson Industries Ltd t/a Doortech
Summary DISPUTE - Applicant sought payment of non-competition premium - Premium paid monthly on condition applicant did not breach competition and confidentiality clauses and required extended four month notice period - Premium to be repaid if conditions broken - Applicant resigned when parties could not agree on new terms after expiry of purported fixed term agreement - Worked four month notice period and submitted entitled to premium payments during that time - Respondent argued agreement to pay premium ended when fixed term agreement ended - However, parties agreed terms rolled over when employment extended past expiry date - Paid premium during previous “gap” between fixed term agreements - Respondent relied on provisions of premium agreement to require applicant to work extended notice - Not fair and reasonable for respondent to exercise obligation part of premium while not remunerating him accordingly - Applicant entitled to premium payments during notice period - Breach of contract counterclaim withdrawn - Sales consultant
Result Question answered in favour of applicant ; Costs reserved
Main Category Dispute
Statutes ERA s66(2)(a);ERA s66(2)(b)
Number of Pages 7
PDF File Link: wa 55_08.pdf [pdf 27 KB]