Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No [2011] NZERA Auckland 193
Hearing date 9 May 2011
Determination date 10 May 2011
Member A Dumbleton
Representation Christiansen (in person) ; no appearance
Location Auckland
Parties Christiansen v Sevans Group (NZ) Ltd
Summary UNJUSTIFIED DISADVANTAGE - UNJUSTIFIED DISMISSAL - Constructive dismissal - No appearance for respondent - Applicant claimed forced to resign as not paid remuneration due under employment agreement - Soon after applicant commenced employment found not being paid weekly salary - One salary payment made during applicant’s three month employment - Evidence showed respondent’s lack of funds was reason applicant not paid rather than performance issues - Applicant signalled that without pay job unsustainable and would have to resign - Respondent advised would soon be in receipt of overseas funds that would enable it to pay employees - Applicant still not paid - Applicant advised respondent would take legal proceedings if not paid - Respondent again started funds would be forthcoming and asked applicant to reconsider resignation - Applicant lodged claim in Authority - Authority found applicant employed by respondent under terms and conditions set out in signed written employment agreement - Found applicant employed on salary to be paid weekly - Found applicant not paid amounts entitled to - Found respondent’s failure to pay salary caused applicant unjustified disadvantage, or alternatively unjustified constructive dismissal - Remedies - Applicant did not seek reimbursement of lost wages - $5,000 compensation appropriate - ARREARS OF WAGES - Authority accepted applicant’s claim for unpaid wages and holiday pay - Respondent ordered to pay outstanding amount of wages and holiday pay - Interest awarded - PENALTY - Found respondent committed clear and continuing breach in full knowledge of obligations under employment agreement - $4,000 penalty, payable to Crown, appropriate - Human Resources Manager
Result Applications granted ; Arrears of wages and holiday pay ($21,151.16) ; Interest (8.4%) ; Compensation for humiliation etc ($5,000) ; Penalty ($4,000)(Payable to Crown) ; Costs reserved
Main Category Personal Grievance
Statutes ERA s131;ERA s133;ERA s134;ERA Second Schedule cl11
Number of Pages 4
PDF File Link: 2011_NZERA_Auckland_193.pdf [pdf 15 KB]