| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 16/09 |
| Determination date | 16 February 2009 |
| Member | J Crichton |
| Representation | J Ward ; no appearance |
| Location | Christchurch |
| Parties | DA & JA Ward Ltd v Wood |
| Summary | RECOVERY OF MONIES – BREACH OF CONTRACT – No appearance for respondent – Applicant sought reimbursement of notice period – Applicant claimed entitled to rely on forfeiture provision in company handbook when respondent abandoned employment without notice – Forfeiture provision required either party to provide four weeks notice or in default of such notice four weeks wages to be forfeited – Applicant sent letter to respondent stating applicant failed to attend rostered shifts and gave opportunity to explain absences within seven days or employment terminated for abandonment – Found no evidence respondent received letter or received letter in time to respond within specified time – Applicant confirmed termination of employment when no response received and repayment of notice period sought – Authority found only communication received from respondent suggested some significant emotional distress – Found no evidence how applicant alerted respondent to obligations under forfeiture provision when employment commenced – Authority found needed to be satisfied parties turned minds to obligations as provision onerous – Found evidence from respondent suggested may not have understood nature of purported obligations – Found unconscionable in breach of contract claim Courts would allow recovery of sum out of proportion to loss sustained by employer – Authority concluded respondent not directed to return final pay – However, applicant holding final pay sufficient recompense for any loss may have incurred |
| Result | Orders accordingly ; Costs to lie where they fall |
| Main Category | Breach of Contract |
| Cases Cited | Robertson Turnbull Ltd t/a Queenstown Night 'N Day Foodstore v Labour Inspector unreported, P Cheyne, 8 May 2008, CA 61/08;Ozturk v Gultekin T/A Halikainas Restaurant [2004] 1 ERNZ 572 |
| Number of Pages | 5 |
| PDF File Link: | ca 16_09.pdf [pdf 21 KB] |