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EMPLOYMENT CASES SUMMARY April 2007 - Table of Contents
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Penalty - April 2007

 
 

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Adsett v Wellesley Ltd

13 Mar 2007, D Asher, WA 40/07, (8 pages)

UNJUSTIED DISADVANTAGE - No written employment agreement - Applicant responded to advertisement for camp manager - Claimed permanently employed as camp manager with trial period - Respondent claimed offered casual work at camp - Applicant shown around camp by other employee ("S") - S gave evidence respondent told him applicant full-time manager when S not at camp site - Also said applicant consistently referred to as camp manager - Worked for respondent little over two weeks - Authority preferred applicant's evidence employed as permanent camp manager - Had respondent complied with obligation to provide employment agreement, written record of work to be performed would have existed - Was major cause of employment relationship problem - No reference to casual employment in advertisement or at interview - While both parties' evidence credible, applicant's preferred due to S's supporting evidence - Authority accepted S independent witness - Fact hourly rate equated to salary offered and time sheets not required consistent with applicant's understanding - Respondent repudiated agreement by not requiring full time attendance and reducing pay - Significantly disadvantaged - Unjustified disadvantage - UNJUSTIFIED DISMISSAL - Constructive dismissal - Fairly and reasonably open to applicant to regard changes amounted to termination of employment - In alternative, had Authority found against unjustified dismissal, would have been appropriate to award significant penalties for material breaches of Employment Relations Act 2000 - Would have directed most if not all monies be paid to applicant - Respondent's failures entirely responsible for bringing of matter - Constructive dismissal - PENALTY - Respondent accepted breached obligation to provide employment agreement - Failure significant contributor to finding - Also failed to advise applicant could seek independent advice and give reasonable opportunity to seek it - Harm caused by breach largely remedied by significant remedies awarded to applicant - Nominal penalty - Length of service two weeks - Camp manager

Result: Application granted ; Reimbursement of lost wages ($8,682)(three months ten days) ; Compensation for humiliation etc ($6,000) ; Penalty ($100)(To Crown) ; Costs reserved

Booker (Labour Inspector) v Gill t/a Gills Cleaning Services

15 Sep 2006, V Campbell, AA 294/06, (3 pages)

ARREARS OF HOLIDAY PAY - Applicant Labour Inspector sought holiday pay, interest, penalty and costs - Outstanding holiday pay owed upon termination of employment - No appearance by respondent - No good cause for failure to attend - Authority satisfied respondent served notice of investigation meeting - Respondent failed to keep or produce wage and time records - Prejudiced applicant's ability to bring accurate claim - Arrears of holiday pay due and owing - Interest 8.5 percent - Applicant directed to serve copy of determination on respondent forthwith - PENALTY - Respondent in breach of ERA s130 2000 for failure to keep wage and time records - Appropriate penalty be imposed - COSTS - Applicant entitled to filing fee - Cleaner

Result: Application granted ; Arrears of holiday pay ($555.69)(Payable to Labour Inspector) ; Interest (8.5%) ; Penalty ($250)(Payable to Crown) ; Orders accordingly ; Disbursements in favour of applicant ($70)(Filing fee)

Glen v Modern Teaching Aids (NZ) Ltd

3 Aug 2006, J Crichton, CA 115/06, (10 pages)

UNJUSTIFIED DISMISSAL - Redundancy - Employment agreement specified six month probationary period and one week notice period - Notice period one month on completion of probation - Respondent based in Australia - Applicant advised in telephone discussion redundant with immediate effect - Dispute over discussion and notice period - Question fundamentally about consultation - Short telephone discussion only "consultation" before redundancy - Preferred applicant's recollection - Even if preferred respondent's would have had no difficulty concluding consultation so inadequate as to make decision to terminate unfair - Appearance of pre-determination - Such peremptory consultation could not comply with good faith obligations - Even if applicant could not be redeployed employer acting in good faith would have been prepared to be flexible as to matters such as notice - Applicant produced letter apparently written by superior ending probationary period and confirming permanent employment - Respondent disputed authenticity of letter and superior's authority to end probationary period early - Claimed letter hearsay -Superior not available to give evidence, but his direct evidence would have been admissible - Authority's equity and good conscience jurisdiction also allowed letter as evidence if assisted investigation - Likely letter originated from superior - Applicant reasonably believed it represented respondent's views - Doctrine of undisclosed principal applied entitling applicant to believe probationary period ended - On balance of probabilities belief reasonable - Respondent bound by letter - Unjustified dismissal - ARREARS OF WAGES - Notice period one month - Arrears due and owing - PENALTY - Respondent's actions not sufficiently extreme - Length of service five months - Sales representative

Result: Application granted ; Compensation for humiliation etc ($3,000) ; Reimbursement of lost wages ($2,537.54) ; Arrears of wages ($2,812.50)(notice) ; Costs reserved

Vukomanovic v Sportzone Sports Ltd

7 Aug 2006, G Wood, WA 112/06, (10 pages)

UNJUSTIFIED DISMISSAL - Serious misconduct - Summary dismissal - Applicant employed to fundraise for community soccer projects - Second respondent ("M") director of first respondent ("S") - M concerned following comments from soccer community about applicant's behaviour - M alleged applicant took business cards believing were season tickets and intended to sell them - Dismissed applicant without raising concerns - Insufficient evidence supporting serious allegation applicant sought to profit from cards - S accepted procedures in dismissing not those of fair and reasonable employer - However, claimed had good cause to dismiss - No procedural steps taken - No substantive ground existed that would have led fair and reasonable employer to dismiss - Applicant had difficulties with English - Issues of communication should have been worked through - Remedies - S in bad financial position - Could not afford to employ applicant - In all circumstances reinstatement impracticable - ARREARS OF WAGES - Failed to pay final pay - Parties agreed to pay rise but no increase ever paid - Agreement subject to implied condition fundraising successful - Fundraising unsuccessful, therefore entitled to wages at original rate - PENALTY - S breached duty by withholding final pay - M not personally liable as acted at all times as director - No good purpose served in paying penalty to Crown - Length of service 11 months - Project Leader

Result: Application granted (Unjustified dismissal) ; Reimbursement of lost wages (three months) ; Compensation for humiliation etc ($2,500) ; Arrears of wages (Quantum to be determined) ; Application dismissed (Penalty) ; Disbursements ($70)(Filing fee)

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