Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 104/09
Hearing date 27 May 2009
Determination date 17 July 2009
Member H Doyle
Representation D Creevey (Applicant in person) ; D Creed
Location Nelson
Parties Creevey v Aimex Ltd
Summary UNJUSTIFIED DISMISSAL – Redundancy – Good faith - Applicant claimed redundancy unjustified – Respondent claimed redundancy genuine and followed fair procedures – Respondent requested applicant to attend meeting to discuss business restructure – Applicant took annual leave and upon return received letter from respondent advising review undertaken and applicant’s position may be redundant – Applicant emailed respondent ideas for alternative positions - Second meeting held to discuss alternative positions – Three days later, applicant advised position redundant and no alternatives available – Applicant claimed redundancy not genuine as applicant’s department profitable and position assigned to other employees – Authority found genuine business reasons for restructure – Found applicant not replaced as position no longer existed – Applicant claimed redundancy process breached good faith – Found redundancy decision predetermined before applicant’s return from leave therefore second meeting did not constitute good faith consultation – Found applicant not provided with relevant information to have real opportunity to comment – Found respondent failed to consult employees on wider basis to identify alternative positions – Dismissal unjustified – REMEDIES – No contributory conduct – Authority declined compensation for loss of job as redundancy would have followed in any event – Found however, if proper procedures followed redundancy process would have taken longer, therefore compensation for one week’s pay appropriate – Found compensation for humiliation of $5,000 appropriate – Declined award for loss of benefit of medical insurance - Parts Manager
Result Application granted ; Compensation for humiliation ($5,000) ; Reimbursement for lost wages ($1,000) ; Disbursements in favour of applicant ($70)(Filing fee) ; No order for costs
Main Category Personal Grievance
Statutes ERA s4(1A)(c);ERA s103A
Number of Pages 13
PDF File Link: ca 104_09.pdf [pdf 51 KB]