| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | WA 81/08 |
| Hearing date | 26 Feb 2008 - 27 Feb 2008 (2 days) |
| Determination date | 11 June 2008 |
| Member | J Crichton |
| Representation | G Davenport ; A Shirley |
| Location | Wellington |
| Parties | Hart & Anor v Carlton Party Hire Ltd |
| Other Parties | Magill |
| Summary | ARREARS OF WAGES - Applicants alleged owed arrears under profit share clause - Also claimed respondent had not acted in good faith to enable calculation of entitlement - No profit calculations made during employment despite requests from applicants and contractual obligation to do monthly calculation - Authority analysed three month period - Applicants’ calculations preferred as information presented transparently - Unlike respondent, which failed to provide documentation in timely way, failed to make calculations when due and changed basis for apportioning overheads - Bad faith for respondent to make unilateral decisions in respect of level at which administrative charges levied against profit - Arrears owing from two months which showed profit - Parties to identify profits for remainder of employment using applicant’s calculations - Interest 7 percent - Leave reserved to return if required - BREACH OF CONTRACT - General damages for distress suffered by reason of treatment received from respondent - Distress a function of respondent’s failure to pay them in accordance with employment agreement, perform calculation and address legitimate concerns in a timely way - PENALTY - Clear breach of good faith - $8,000 payable to each applicant due to flagrant nature of breaches - COSTS - Full solicitor/client costs from end of employment to point where it could reasonably be said basic information provided - Costs otherwise reserved - COUNTERCLAIM - BREACH OF CONTRACT - Respondent initially raised three counterclaims but withdrew two due to applicants’ evidence - During investigation meeting respondent threatened to reopen withdrawn claim - For avoidance of doubt, Authority ordered claim withdrawn - In remaining counterclaim, respondent alleged misuse of credit card - Applicant’s evidence accepted - All counterclaims dismissed or disposed of - Authority commented on respondent’s behaviour, namely persistent refusal to supply relevant documents and making serious allegations in counterclaims when could have discerned from own documentation or rudimentary inquires that allegations were entirely without foundation |
| Result | Application granted ; Arrears of wages (quantum to be determined) ; Interest (7%) ; Damages ($3,000)(each applicant) ; Penalty ($8,000)(payable to each applicant) ; Costs as ordered ; Counterclaim dismissed |
| Main Category | Arrears |
| Statutes | ERA s4A;ERA s134 |
| Cases Cited | Binnie v. Pacific Health Ltd [2002] 1 ERNZ 438 |
| Number of Pages | 17 |
| PDF File Link: | wa 81_08.pdf [pdf 54 KB] |