Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 287/09
Hearing date 22 Apr 2009
Determination date 19 August 2009
Member Y S Oldfield
Representation B Saunders (in person) ; L Pipe, A Hutton
Location Auckland
Parties Saunders v Northland Spars and Rigging
Summary UNJUSTIFIED DISMISSAL – UNJUSTIFIED DISADVANTAGE – Redundancy – Applicant claimed respondent’s redundancy consultation inadequate – Also claimed redeployment options not properly considered and not genuine redundancy – Applicant an original owner of business on sold to respondent – Sale and purchase agreement contained provision for applicant’s employment with respondent – Applicant told by respondent worksite being closed – Respondent proposed disestablishing applicant’s managerial position and offered new position – Salary of new position lower than earlier position – Respondent argued applicant never functioned as manager despite title – Argued new position more accurate reflection of applicant’s work – Respondent offered applicant incentive based pay system allowing potential to reach original salary level – Applicant informed of redundancy when rejected redeployment offer – Subsequently incident during notice period where applicant told customer could not complete work because not employed by respondent – Respondent sent applicant away – Authority found applicant knew respondent seeking to reduce costs and rationalise services – Found applicant knew original role did not match managerial job title – Found applicant took no steps to exercise functions of manager – Found although respondent operated informally, consultation adequate – Found applicant rejected redeployment option – Found redeployment option offered to substantially similar role at comparable level of remuneration – Found redeployment offer reasonable – Found redundancy genuine – However, found respondent moved with undue haste regarding redundancy and sending away – Redundancy procedurally unjustified – Remedies – Found no entitlement to lost earnings – Found minor procedural defects – Found applicant’s behaviour towards customer warranted 100 percent contributory conduct – Operations Manager
Result Application granted ; Compensation for humiliation etc (reduced to $0) ; Costs reserved
Main Category Personal Grievance
Statutes ERA s124
Number of Pages 9
PDF File Link: aa 287_09.pdf [pdf 31 KB]