Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No [2011] NZERA Christchurch 23
Hearing date 28 Jan 2011
Determination date 03 February 2011
Member H Doyle
Representation L Chappell ; no appearance
Location Christchurch
Parties Davies and Ors v Timaru Bus Services Ltd
Other Parties Reece, Vevers
Summary ARREARS OF REDUNDANCY COMPENSATION – Applicants sought unpaid redundancy compensation – Applicants dismissed for redundancy after respondent unsuccessful in securing tender for urban bus routes – Respondent attempted to facilitate employment with new operator – Applicants successful in obtaining employment with new operator – Applicants received final payslips which provided for redundancy compensation – Applicants received amended payslips which did not include redundancy compensation – Applicants advised no redundancy compensation payable because applicants transferred to new employer on comparable terms – Authority found collective employment agreement (“CEA”) required respondent to consult with union on implications of sale or transfer of respondent’s business – Found respondent failed to comply with CEA – Found no sale or transfer of respondent’s business to new operator – New operator claimed no negotiation about transfer of employees with respondent – Found applicants obtained positions with new operator by applying in usual way – Found applicants treated as new employees – Found applicants entitled to redundancy compensation in accordance with CEA – Interest payable – Urban Bus Drivers
Result Application granted ; Arrears of redundancy compensation ($1,373.60)(first applicant) ($685.51)(second applicant) ($703.42)(third applicant) ; Interest (5%) ; No order for costs ; Disbursements in favour of applicants ($420)(Travel, accommodation and filing fee)
Main Category Arrears
Statutes ERA Part 6A
Number of Pages 7
PDF File Link: 2011_NZERA_Christchurch_23.pdf [pdf 26 KB]