| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 212/10 |
| Hearing date | 8 Jun 2010 |
| Determination date | 22 November 2010 |
| Member | H Doyle |
| Representation | J Duff (in person) ; D Rhodes |
| Location | Invercargill |
| Parties | Labour Inspector (Duff) v Cornerstone Enterprises Ltd t/a Dee Night 'N Day |
| Summary | ARREARS OF HOLIDAY PAY – BREACH OF CONTRACT – No appearance by Mr Sharma (“S”) – Applicant Labour Inspector sought to recover unpaid holiday pay on behalf of S – Respondent claimed holiday pay not owing due to forfeiture clause in handbook to retain money owing if 4 weeks notice not given – Applicant claimed forfeiture clauses were penalty clauses by nature and unlawful and unenforceable – Applicant unable to determine how much notice given – Respondent claimed 4 days notice given – Respondent claimed S held supervisory position and respondent inconvenienced by S leaving – Authority found forfeiture clause was penalty provision – Found sum out of proportion in comparison to likely loss arising from breach – Found no evidence of actual loss caused by breach by S – Found penalty clause not enforceable – Holiday pay due and owing – PENALTY – Applicant sought penalty for non-compliance with minimum employment standards – No order for penalty |
| Result | Application granted (arrears of holiday pay) ; Arrears of holiday pay ($1,151.62) ; Applications dismissed (breach of contract) (penalty) ; No order for costs ; Disbursements in favour of applicant ($70)(filing fee) |
| Main Category | Arrears |
| Cases Cited | Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79;JA Ward Ltd v Angie Marie Wood unreported, J Crichton, 16 Feb 2009, CA 16/09;Night n Day Foodstores Ltd v O’Connor unreported, J Crichton, 28 Jan 2005, CA 12/05;Night n Day Foodstores Ltd v Holden unreported, P Cheyne, 20 April 2004, CA 46/04;Ozturk v Gultekin t/a Halikainas Restaurant [2004] ERNZ 572;Roberts & Turnbull t/a Queenstown Night n Day Foodstore v Labour Inspector unreported, P Cheyne, 8 May 2008, CA 61/08 |
| Number of Pages | 7 |
| PDF File Link: | ca 212_10.pdf [pdf 27 KB] |