| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 214/08 |
| Hearing date | 17 Mar 2008 - 19 Mar 2008 (3 days) |
| Determination date | 19 June 2008 |
| Member | R A Monaghan |
| Representation | R Harrison ; L Campbell |
| Location | Auckland |
| Parties | Dolan v Filta Vacuum Products Ltd |
| Summary | UNJUSTIFIED DISMISSAL - Misconduct - Respondent claimed applicant wrongly overpaid himself bonuses - During earlier discussion to determine bonus, parties had accepted figure supplied by accountant without discussing how calculated - Applicant considered parties had agreed to this new method and used it in later calculations - Respondent disagreed, submitted accountant’s calculation a one off to settle bonus for that year - New method resulted in overpayment of bonuses - Overpayments discovered by different accountant - Respondent dismissed applicant as considered overpayments made deliberately and covered up - No agreement to change methodology, but accounts otherwise in order - Respondent did not investigate suspicions adequately or have reasonable grounds for conclusions - Dismissal unjustified - Remedies - Applicant should have appreciated new approach unsound and not been so quick to conclude new methodology to be applied - Level of transparency associated with calculations less than expected - Also failed to acknowledge possibility of mistake, behaviour continued during investigation meeting - Contributory conduct - ARREARS OF WAGES AND HOLIDAY PAY - Respondent accepted holiday pay owing but claimed entitled to retain it - Employment agreement did not entitle respondent to retain money if dispute over whether money owed - Holiday pay owing - Parties unable to agree on budget require to calculate outstanding bonus - Authority based calculations on draft budget - Bonus payment owing - Interest 8.7 percent - COUNTERCLAIM - RECOVERY OF MONIES - As no agreed change to methodology respondent’s bonus calculations adopted – Applicant overpaid - Repayment ordered - Interest 8.7 percent - Respondent also sought to recover overpayments made to another employee as result of applicant’s calculations - No legal basis advanced for right to recover from applicant - Authority declined to make order - Penalty for breach of good faith not warranted and outside 12 month time limit - General manager |
| Result | Application granted ; Reimbursement of lost wages ($6,875) ; Compensation for humiliation etc ($10,000) ; Arrears ($25,395.37)(Bonus) ; Arrears of holiday pay ($8,303.90) ; Interest (8.7%) ; Counterclaim granted (recovery of monies) ; Recovery of monies ($36,283.94) ; Interest (8.7%) ; Costs reserved |
| Main Category | Personal Grievance |
| Statutes | ERA s4A;ERA s135(5) |
| Number of Pages | 25 |
| PDF File Link: | aa 214_08.pdf [pdf 68 KB] |