| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 418/10 |
| Hearing date | 2 Sep 2010 |
| Determination date | 21 September 2010 |
| Member | V Campbell |
| Representation | K Single ; T Hence |
| Location | Auckland |
| Parties | Clothier v Fashion Traders Ltd |
| Summary | UNJUSTIFIED DISMISSAL – Redundancy – Applicant claimed unjustified dismissal – Respondent claimed restructuring required for financial reasons – Respondent proposed sales roles to be contracted out – Respondent finalising contract when consulting with applicant – Redundancy genuine – Found respondent clearly set out proposal to contract out sales role to third party to return company to more profitable position – Found respondent failed to disclose 50 percent shareholding and director of third party company – Found consultation process rushed – Found respondent should have given applicant more time to get legal advice – Found consultation process fatally flawed – Found respondent consulted for less than one week – Found applicant given four days notice position possibly disestablished – Found applicant not given opportunity to seek independent legal advice – Found applicant not in position to provide considered feedback on proposal – Found respondent did not act as fair and reasonable employer – Dismissal unjustified – REMEDIES – No contributory conduct – Found no reimbursement of lost wages as redundancy genuine – Found $3,000 compensation appropriate – Sales Consultant |
| Result | Application granted ; Compensation for humiliation etc ($3,000) ; Costs reserved |
| Main Category | Personal Grievance |
| Statutes | ERA s103A;ERA s4 |
| Cases Cited | Communication & Energy Workers Union Inc v Telecom NZ Ltd [1993] 2 ERNZ 429;GN Hale & Son Ltd v Wellington Caretakers IUOW [1991] NZLR 151;NZ Fasteners Stainless Ltd v Thwaites [2000] ERNZ 739;Simpsons Farms v Aberhart [2006] ERNZ 825;Wellington International Airport Ltd v Air NZ [1993] NZLR 671 |
| Number of Pages | 6 |
| PDF File Link: | aa 418_10.pdf [pdf 36 KB] |