| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 219/09 |
| Hearing date | 8 Dec 2009 |
| Determination date | 18 December 2009 |
| Member | J Crichton |
| Representation | D Beck ; P Shaw |
| Location | Christchurch |
| Parties | Callaghan v Taege Manufacturing Ltd |
| Summary | UNJUSTIFIED DISMISSAL – Redundancy – Good faith – Applicant claimed redundancy procedurally unjustified and alleged respondent breached good faith obligations – Respondent suffered from financial difficulties and needed to implement redundancy process – Respondent informed employees of financial situation – Respondent held individual employee meetings as part of redundancy process – Respondent dismissed applicant on the spot as respondent predetermined applicant’s skills as least appropriate for business needs – Respondent argued redundancy procedure cut short because redundancy implemented at last minute when was absolutely necessary – Argued procedural deficiencies not due to breach of good faith obligations – Authority found redundancy genuine – Found, based on respondent’s admissions, redundancy predetermined, no consultation held, and no opportunity for applicant to put forward or consider alternatives – Found respondent behaved in good faith throughout and deficiencies not due to improper or unfair conduct – Authority noted respondent made all efforts to avoid redundancy and was reluctant to make any employee redundant - Dismissal unjustified – No breach of good faith – REMEDIES – No contributory conduct – No lost wages award as redundancy genuine – $2,500 compensation appropriate – Fitter/Tuner |
| Result | Application granted (Unjustified dismissal – Redundancy) ; Application dismissed (Unjustified dismissal - Breach of good faith) ; Compensation for humiliation etc ($2,500) ; Costs reserved |
| Main Category | Personal Grievance |
| Cases Cited | Simpson Farms Ltd v Aberhart [2006] ERNZ 825;STAMS v NZ Rennet Co Ltd [1991] 2 ERNZ 487 |
| Number of Pages | 8 |
| PDF File Link: | ca 219_09.pdf [pdf 31 KB] |