| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 266/10 |
| Hearing date | 29 Apr 2010 |
| Determination date | 03 June 2010 |
| Member | R A Monaghan |
| Representation | G Gill ; R Elford |
| Location | Auckland |
| Parties | Hawkins v Malcove Distributors Ltd |
| Summary | UNJUSTIFIED DISMISSAL – Redundancy – Applicant claimed redundancy not for genuine business reasons and procedurally unjustified – Respondent argued redundancy justified – Respondent employed applicant to increase sales – Respondent suffered financial loss after major client cancelled contract with respondent – Respondent’s business review concluded could not afford to continue applicant’s position – Respondent informally advised applicant redundancy possible – Applicant dismissed information as a “vague threat” – Applicant made redundant – Respondent argued redundancy consultation process “torture” for employees therefore no consultation implemented – Authority found redundancy for genuine business reasons – Found respondent suffered financial loss after loss of client contract – Found respondent made no comments amounting to dismissal for poor performance – Found applicant employed to strengthen sales performance and not “lured” into employment – Found even if “lured” into employment, nothing to indicate that matter had any bearing on genuineness of redundancy – Found while respondent made observation redundancy process cause employees distress, law requires consultation process be followed – Dismissal unjustified – REMEDIES – No contributory conduct – No award for lost wages as redundancy genuine - $4,000 compensation appropriate – Sales |
| Result | Application granted ; Compensation for humiliation etc ($4,000) ; Costs reserved |
| Main Category | Personal Grievance |
| Cases Cited | Simpsons Farms Ltd v Aberhart [2006] ERNZ 825 |
| Number of Pages | 7 |
| PDF File Link: | aa 266_10.pdf [pdf 26 KB] |