| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2011] NZERA Auckland 392 |
| Hearing date | 8 Sep 2011 |
| Determination date | 12 September 2011 |
| Member | R Arthur |
| Representation | A Milne (in person) ; G Pollack |
| Location | Auckland |
| Parties | Milne v Steve Clark Engineering Ltd |
| Summary | UNJUSTIFIED DISMISSAL – Redundancy – Applicant claimed unjustifiably dismissed by respondent because had no warning of impending redundancy or respondent director’s (“C”) decision, selected for redundancy over respondent’s other employee and was pressured into signing settlement agreement in order to get final pay – Respondent claimed decision and process fair and applicant could not bring personal grievance as had freely signed settlement agreement – Authority found applicant was not compelled to sign settlement agreement – However, found no accord and satisfaction by virtue of terms agreed such that applicant not free to pursue personal grievance because agreement only provided what applicant was entitled to – Found respondent did not have enough work to justify retaining full-time welder – Found redundancy genuine – Found applicant not unfairly selected for redundancy as other employee could do work which applicant could not – Found C twice visited respondent accountants and decided based on financial advice to reduce staff levels – Found respondent failed to tell applicant directly of real prospect that position would not continue in the following year and to consult with applicant once decision was made – Dismissal unjustified – REMEDIES – No contributory conduct – Found applicant not entitled to lost wages as redundancy made for genuine commercial reasons – $2,500 compensation appropriate – Welder |
| Result | Application granted ; Compensation for humiliation etc ($2,500) ; Disbursements in favour of applicant ($71.56)(filing fee) ; No order for costs |
| Main Category | Personal Grievance |
| Statutes | ERA s174 |
| Cases Cited | Graham v Crestline Pty Ltd [2006] ERNZ 848 |
| Number of Pages | 7 |
| PDF File Link: | 2011_NZERA_Auckland_392.pdf [pdf 22 KB] |