Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No [2011] NZERA Auckland 249
Hearing date 24 May 2011
Determination date 10 June 2011
Member Y S Oldfield
Representation R Harrison ; K Beck
Location Auckland
Parties Maher v Apex General Ltd
Summary PRACTICE AND PROCEDURE – Preliminary determination of whether accord and satisfaction between parties or, alternatively, whether applicant estopped from pursuing personal grievance - Applicant later learnt respondent almost immediately took on new broker after applicant made redundant – Respondent claimed Authority could not determine matters as subject of full and final settlement between parties – Respondent’s manager (“H”) had meeting with applicant confirming redundancy due to restructure – Applicant given letter outlining decision and noted no other redeployment available – Applicant claimed afraid if challenged redundancy would jeopardise respondent’s offer of enhanced redundancy entitlement – Claimed as not given reason for selection could not decide if decision fair – Applicant met with H to discuss restraint of trade, outstanding commission, enhanced entitlement and making corrections to employment agreement – Letter recording settlement amended accordingly - Applicant claimed also requested at meeting redundancy payment recorded as compensation and guarantee would retain job if other brokers left during notice period – H disputed matters were discussed and noted not recorded in settlement letter – Authority noted settlement letter stated enhanced entitlement offered by respondent on condition in full and final settlement of all matters – Applicant claimed accepted settlement on basis redundancy genuine and assured by H if position available during notice period would be retained – Authority found as not recorded in letter applicant’s recollection incorrect – Respondent noted another broker suffering ill health increased need to take on another broker after redundancy – Claimed a former employee negotiated to work for respondent again part-time on basis would bring new clients therefore not obliged to offer position to applicant – H acknowledged considered employing new broker during notice period but decided against it – Applicant claimed that initially accepted redundancy and, as no live dispute to be settled, no accord and satisfaction – Respondent claimed did not need to be formal dispute on record, applicant raised number of points discussed before matters resolved and dispute settled - Authority found live dispute settled by terms of settlement letter – Applicant claimed even if was settlement, was accepted on basis redundancy genuine – Respondent claimed settlement based on common understanding and included redundancy – Authority noted evidence showed applicant concerned about redundancy selection process – Found genuineness of redundancy within scope of issues resolved in settlement letter – Applicant claimed respondent failed to act in good faith as not informed about broker’s ill health and failed to consider redeployment opportunities – Authority noted whether agreement binding must be determined in relation to circumstances at time agreement entered into – Found full and final settlement included genuineness of redundancy – Found respondent had proved accord and satisfaction – Found unnecessary to determine estoppel question - Application dismissed - Commercial Insurance Broker
Result Application dismissed ; Costs reserved
Main Category Practice & Procedure
Cases Cited Cabletalk Astute Network Services Ltd v Cunningham [2004] ERNZ 506
Number of Pages 9
PDF File Link: 2011_NZERA_Auckland_249.pdf [pdf 40 KB]