| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 302/10 |
| Hearing date | 1 Jun 2010 |
| Determination date | 28 June 2010 |
| Member | R A Monaghan |
| Representation | C Lakatani (in person) ; M Young |
| Location | Auckland |
| Parties | Lakatani v Bananas Bananas Bananas Bananas Ltd (formerly GSC People Ltd) |
| Summary | UNJUSTIFIED DISMISSAL - Redundancy - Applicant claimed unjustifiably dismissed for redundancy - Respondent claimed dismissal justified on financial grounds - Applicant had 20 percent shareholding in respondent - Applicant paid salary by respondent - Respondent experienced financial difficulties and employee made redundant - Respondent’s financial situation did not improve - Applicant and respondent’s director (“S”) had regular discussions about respondent’s financial situation - Respondent unable to meet full salary payments for three month period - Applicant and S discussed making applicant redundant or negotiating independent contractor or retainer arrangement - S claimed applicant agreed to being paid $1,500 per month instead of salary while negotiated contract for services - Claimed applicant acknowledged redundancy inevitable - Applicant claimed did not agree to payment instead of salary and only agreed to payment on interim basis as felt had no choice - Applicant did not sign draft retainer agreement S prepared - Parties met to discuss matter but meeting became heated and applicant walked out - S wrote to applicant terminating employment for redundancy - Authority found redundancy for genuine commercial reasons - Found parties entered into consultation process - Found agreement applicant be paid $1,500 retainer pending entering into more detailed contract for services - Found parties unable to conclude agreement - Found dismissal letter culmination of consultation process - Dismissal justified - ARREARS OF WAGES - Applicant claimed owed unpaid salary for six month period - Respondent claimed applicant only owed portion of salary not able to be paid for three month period - Found applicant agreed to retainer in place of salary payments - Found applicant only owed portion of unpaid salary - Interest payable - ARREARS OF HOLIDAY PAY - Applicant claimed owed unpaid holiday pay - Authority found holiday pay owing - Respondent to pay outstanding holiday pay - Interest payable |
| Result | Application dismissed (unjustified dismissal) ; Applications granted (arrears of wages and holiday pay) ; Arrears of wages ($7,083.34) ; Arrears of holiday pay ($2,533.85) ; Interest (3.1%) ; Costs reserved |
| Main Category | Personal Grievance |
| Number of Pages | 7 |
| PDF File Link: | aa 302_10.pdf [pdf 22 KB] |