| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 190/10 |
| Determination date | 27 April 2010 |
| Member | K J Anderson |
| Representation | E Davies ; S Turner, N Van der Sluis |
| Location | Auckland |
| Parties | Christensen v BP Oil New Zealand Ltd |
| Summary | DISPUTE – Whether redundancy provision in employment agreement (“EA”) correctly interpreted and applied by respondent – Applicant initially employed at respondent’s subsidiary company (“CORO”) – Applicant subsequently employed by respondent – New EA provided “previous CORO service will qualify towards future redundancy compensation” – Provided redundancy compensation governed by respondent’s policy – Applicant sought declaration respondent obligated to pay redundancy payment of six months’ pay for first year of service with CORO and one month’s pay for each subsequent year of service in accordance with respondent’s redundancy policy in EA – Respondent argued no obligation to calculate previous service with CORO in redundancy compensation as respondent differentiated employee’s service with CORO from service with respondent – Authority found EA superseded terms and conditions with CORO – Found EA unambiguous therefore respondent’s redundancy policy applied at time of redundancy – Found EA provided redundancy calculated by taking into account all previous service with CORO – Found applicant able to obtain “tax benefits” related to “grossing up” under redundancy policy – Found neither parties’ substantive arguments correct - Found redundancy compensation to be calculated for total of 17 years and 122 days service – Authority noted effect of findings would leave applicant in worse position than under respondent’s calculation – Declined to make declaration – Parties left to arrive at suitable solution – No interest awarded – COSTS – Costs to lie where they fall – Question answered |
| Result | Question answered ; Application dismissed ; Costs to lie where they fall |
| Main Category | Dispute |
| Cases Cited | New Zealand Tramways and Public Transport Employees Union Inc v Transportation Auckland Corporation Ltd [2006] ERNZ 1005 |
| Number of Pages | 9 |
| PDF File Link: | aa 190_10.pdf [pdf 34 KB] |