Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 43/10
Hearing date 23 Sep 2009
Determination date 03 February 2010
Member R A Monaghan
Representation A Nichols ; M Ralph
Location Auckland
Parties Nichols v Timbertech (2004) Ltd
Summary DISPUTE – Applicant argued entered employment relationship in reliance on representations of obtaining equity share in company – Applicant claimed accepted reduced salary in reliance on offer of equity share – Applicant had not received any shares – Applicant sought order for settlement of entitlement to shareholding – Respondent argued no breach of terms and conditions of applicant’s employment – Respondent claimed shares part of commission package and subject to sale of franchises – No mention in employment agreement of share equity – Authority found share equity raised during recruitment but required further discussion – Found no arrangement finalised – Found oral term of employment that shareholding be part of remuneration package – Found no shareholding acquired - Found oral agreement too vague to be enforceable – Found applicant not misled or deceived about details of shareholding arrangement – Found no liability of respondent to applicant in respect of matters raised – Franchising manager
Result Question answered in favour of respondent ; Costs reserved
Main Category Dispute
Cases Cited Sinclair v Webb & McCormack Ltd & Anor (1990) 3 NZELC 97
Number of Pages 8
PDF File Link: aa 43_10.pdf [pdf 30 KB]