Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 461/10
Hearing date 24 Mar 2009 - 13 Oct 2009 (3 days)
Determination date 27 October 2010
Member Y S Oldfield
Representation R Harrison ; S Neville
Location Auckland
Parties Beckett v Herbert Insurance Group Ltd
Summary DISPUTE – ARREARS OF WAGES – Applicant sought to recover unpaid bonus plus interest – Respondent claimed no bonus payable – Offer of employment contained in email and contained base salary and incentive component of remuneration – Respondent claimed incentive scheme included income from commission only and not fees – Applicant disagreed – Authority found premium income and brokerage did not include fees – Found fees to be excluded from incentive calculation – Parties agreed Mortgage Indemnity Insurance and Mortgage Impairment Insurance must be excluded from incentive calculations – Parties disagreed about what fell within special risks category and whether included Investment Managers Insurance (“IMI”) – Found income from IMI to be excluded from incentive calculations – Parties disagreed on whether there should be deduction for business new employee attracted after joining company – Found no deductions to be made – Applicant claimed adjustments already made regarding Gold Coast (“GC”) account and no further deduction required – Found management accounts included GC business not originally agreed to be included as income for purposes of bonus calculation – Found incentive payment not payable unless agreement first – Found GC income to be excluded from incentive calculations – Found Norfolk Island business fell within New Zealand account and should be included in incentive calculations – Interest payable – CEO, Fire and General Division
Result Questions answered ; Arrears of wages ($9,626.88) ; Interest (5.2%) ; No order for costs
Main Category Arrears
Statutes ERA Second Schedule cl11
Number of Pages 12
PDF File Link: aa 461_10.pdf [pdf 34 KB]