| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2011] NZERA Christchurch 157 |
| Hearing date | 12 Oct 2011 |
| Determination date | 14 October 2011 |
| Member | M B Loftus |
| Representation | S Robinson ; no appearance |
| Location | Invercargill |
| Parties | Downey and Ors v X Factor Services |
| Other Parties | Thomas, Wallis |
| Summary | ARREARS OF WAGES AND HOLIDAY PAY – Applicants sought unpaid wages and holiday pay – No appearance for respondent – Applicants and Work & Income raised concerns about pay with respondent principal (“W”) but to no avail – Applicants resigned after W failed to address issue – W claimed applicants had falsified time sheets which had resulted in overpayment of wages – Found applicants claims provided accurate reflection of amounts owed – Found W had no credibility and W’s unsubstantiated accusations were worthless – Found liability could not lie with respondent as entity did not exist at time liabilities accrued – Found s76 Insolvency Act 2006 excused W from liability – However, found other respondent principal had no protection and so liable for amounts sought – Found by failing to make payments properly due respondent continued to have use of money rightfully owned by applicants – Found interest payable as of date of resignation – Found applicants entitled to arrears of wages and holiday pay – Lawnmowing and Gardening Services |
| Result | Application granted ; Arrears of wages and holiday pay ($4,196.40)(first applicant) ($5,565.54)(second applicant) ($9,404.16)(third applicant) ; Interest (5%) ; Costs reserved |
| Main Category | Arrears |
| Statutes | ERA s134;ERA s135;Judicature (Prescribed Rate of Interest) Order 2011;Insolvency Act 2006 s76;Insolvency Act 2006 s149(1)(a);Partnership Act 1908 s7;Partnership Act 1908 s12 |
| Number of Pages | 7 |
| PDF File Link: | 2011_NZERA_Christchurch_157.pdf [pdf 33 KB] |