| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | [2011] NZERA Wellington 69 |
| Hearing date | 17 Mar 2011 |
| Determination date | 04 May 2011 |
| Member | D Asher |
| Representation | R Brace ; S Langton |
| Location | Wellington |
| Parties | Churchill and Anor v Cognition Consulting Ltd |
| Other Parties | Churchill |
| Summary | BREACH OF CONTRACT – Applicants claimed respondent breached contract as failed to pay final month’s wages - Sought arrears of wages and interest owed to each applicant – Applicants signed three consecutive fixed term contracts with respondent – Contract included clause employment problems would be resolved pursuant to Employment Relations Act 2000 (“ERA”) provisions – Contracts included provision allowing for variation of start and end dates if school term changed – Two days before final contract began respondent sent applicants revised contract extending contract by three weeks – Respondent confirmed by email applicants would receive usual pay until end of revised contract period, applicants would receive 21 days gratuity at end of contract provided applicants had completed 12 months’ for respondent and travel arrangements home yet to be confirmed – Respondent later changed contract and informed applicant end date one month earlier – Informed applicants still employed by respondent during final month but as no work available applicants would take annual leave until contract end date – Applicants asked respondent if could leave country when applicants took annual leave - Respondent informed applicant could not answer question “just yet” - Applicants left country before contract ended after no work available - Respondent claimed final payment to applicants for leave owing plus further 10 days wages as goodwill gesture paid - Parties agreed contract ended at revised date and applicants did not work during final month of contract - Applicants claimed relied on respondent’s earlier advice would receive usual monthly pay until end of revised contract period and advice at meeting could leave country once no work available – Authority found applicants given conflicting advice about whether could leave country when took annual leave at time booked travel and failed to raise concerns with respondent – Noted contract contained provision applicant needed to raise employment problem with respondent in first instance in writing – Found applicants’ failure to communicate concerns with respondent or advise respondent intended to leave country breached contract and good faith obligations – Noted applicants received full holiday pay entitlement and given notice greater than set out in contract – Found inequitable to award lost earnings, for period when applicants made themselves unavailable for work, pursuant to Authority’s statutory obligation to act in equity and good conscience – Application dismissed - School teachers |
| Result | Application dismissed ; Costs reserved |
| Main Category | Breach of Contract |
| Statutes | ERA s4;ERA s157(3) |
| Cases Cited | Sky Network Television Ltd v Duncan [1998] ERNZ 917 |
| Number of Pages | 7 |
| PDF File Link: | 2011_NZERA_Wellington_69.pdf [pdf 21 KB] |