Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 159/08
Hearing date 28 May 2008
Determination date 23 October 2008
Member P Montgomery
Representation G Fraser ; R Russ
Location Christchurch
Parties Fraser v Heritage Travel Group Ltd
Summary UNJUSTIFIED DISMISSAL – Redundancy – Applicant claimed dismissed by respondent without consultation on grounds of redundancy – Respondent argued redundancy decision made after careful consideration of options and alternatives – Argued followed proper procedures and involved applicant in procedures – Applicant claimed respondent’s director highly satisfied with progress in performance review – 6 months later respondent advised applicant’s division’s performance poor and applicant’s ongoing employment being considered – Applicant claimed submitted written analysis on division’s performance but respondent not interested – Respondent announced applicant’s redundancy without providing review report or figures justifying decision to applicant – Respondent argued bank statements and other files made obvious applicant’s newly formed division struggling to match previous seasons sales figures – Respondent argued applicant declined invitation to have open and frank discussion – Authority found evidence of respondent’s manager of considerable importance – Authority found applicant provided evidence of unhealthy atmosphere at respondent – Authority observed at investigation meeting that respondent’s owner operated in an autocratic style and unwilling to accommodate opposing views – Authority found had no reliable documentary evidence from respondent to determine substantive basis for applicant’s dismissal – However, Authority found would not interfere with respondent’s decision declaring applicant’s position redundant on financial grounds – Authority found no consultation process with applicant prior to dismissal – Found offer of alternative position after dismissal did not save respondent from obligation to consult prior to dismissal – Dismissal unjustified – Remedies – Authority found applicant entitled to $6,346 reimbursement of lost wages – Found applicant suffered stress, humiliation, and threat of legal action – Found $7,500 compensation appropriate – Manager travel division
Result Application granted ; Reimbursement of lost wages ($6346.18) ; Compensation for humiliation etc ($7,500) ; Costs reserved
Main Category Personal Grievance
Statutes ERA s123(1)(b);ERA s128(2)
Number of Pages 8
PDF File Link: ca 159_08.pdf [pdf 39 KB]