| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | [2011] NZERA Wellington 29 |
| Determination date | 25 February 2011 |
| Member | D Asher |
| Representation | A Bell ; P Drummond |
| Location | Palmerston North |
| Parties | Grey v Levin Meats Ltd |
| Summary | UNJUSTIFIED DISMISSAL – Redundancy – Applicant claimed respondent repudiated employment agreement by failing to pay salary – Applicant claimed effectively made redundant and owed redundancy compensation as per employment agreement – Respondent claimed applicant resigned – Authority found job coming to end because of sale of plant – Found applicant’s claim expected to receive notice and compensation consistent with employment agreement inherently credible – Found unlikely would give notice of resignation without new job and give up contractual entitlement to redundancy compensation – Found applicant effectively made redundant – Found dismissal unilateral and lacked any procedural fairness – Dismissal unjustified – REMEDIES – No contributory conduct – Applicant claimed unable to meet mortgage payments or other outgoings – $8,000 compensation appropriate – ARREARS OF WAGES AND HOLIDAY PAY – Applicant claimed unpaid wages and holiday pay – New plant owner advised would no longer continue to provide payroll support in respect of respondent’s employees – Applicant claimed arranged for salary payments to be effected through respondent’s accountant – Applicant claimed respondent’s financial position not good and salaries paid at irregular times for irregular amounts – Applicant informed salary payments to stop but services still expected from applicant – Found wages and holiday pay due and owing – COUNTERCLAIM – RECOVERY OF MONIES – Respondent claimed applicant approved lease vehicle resulting in $12,000 loss to respondent – Found no evidence of breach of express or implied duties to respondent – Found within applicant’s authority to make arrangements – Applicant did not dispute continued to receive full normal salary following sale of plant despite reducing work levels – Authority declined claim for balance because contractual duty on respondent to supply work – Authority rejected claim applicant negligent in employing plant manager by inserting 6 month redundancy compensation provision into employment agreement – Found applicant’s actions broadly consistent with managerial responsibilities – Found applicant did not exceed authority by arranging own wage payments – Found no evidence of applicant taking leave as well as ordering payment of same – Applicant conceded acted without authority in arranging payment of unused sick leave – Found sum recoverable from monies owing to applicant – Found respondent failed to prove unidentified and unauthorised expenses paid to applicant – General Manager |
| Result | Applications granted (unjustified dismissal) (arrears of wages and holiday pay) ; Compensation for humiliation etc ($8,000) ; Arrears of wages and holiday pay ($46,547.53 reduced to $36,728.28 for recovery of monies) ; Redundancy compensation ($106,375) ; Counterclaim granted in part (recovery of monies) ; Costs reserved |
| Main Category | Personal Grievance |
| Statutes | ERA s124 |
| Number of Pages | 12 |
| PDF File Link: | 2011_NZERA_Wellington_29.pdf [pdf 38 KB] |