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EMPLOYMENT CASES SUMMARY April 2007 - Table of Contents
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Personal Grievance - Unjustified Disadvantage - 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

Gilbert v EDI Electrical Ltd

28 Feb 2007, J Cricthon, CA 20/07, (8 pages)

UNJUSTIFIED DISMISSAL - Applicant received sports injury - Return to work delayed as injury took longer to heal than anticipated - Applicant attempted to contact respondent on cell phone about progress and left medical certificates in mail box - Parties had no other contact - Respondent claimed applicant told not to call cell phone and regularly did not listen to messages - On recovery applicant returned to work with father and claimed told no job for him - Respondent claimed said was no work at that time - Whether dismissed - Respondent had responsibility to ensure applicant clear no work available "at present" - Took no steps to disabuse applicant of view had lost job - Authority not satisfied parties did all could have done to communicate - Applicant and father interpreted meeting as dismissal - On balance of probabilities not persuaded dismissal did not occur - Unjustified dismissal - UNJUSTIFIED DISADVANTAGE - Respondent failed to deal prudently and sensibly with absence of information - Respondent in stronger position - Had duty to take all reasonable steps to ensure information required from applicant provided - Unjustified action - Also disadvantaged by respondent's delay in complying with request by ACC for information - Due to unreasonable delay earnings related compensation payment delayed - Unjustified disadvantage - Remedies - Applicant failed to pursue other means of contacting respondent - Obliged to alert prolonged absence and explain basis for it - Contributory conduct 10 per cent - ARREARS OF HOLIDAY PAY - Respondent claimed agreement applicant would receive sick pay prior to entitlement but if left job within six months would forfeit right to holiday pay - No evidence agreement existed - However, such agreement without force as avoided effect of minimum rights in Holidays Act 2003 - Arrears due and owing - Length of service three months one week - Electrical technician

Result: Application granted ; Reimbursement of lost wages ($7,411.69) ; Compensation for humiliation etc (Unjustified dismissal)($5,000 reduced to $4,500) ; (Unjustified disadvantage)($4,000 reduced to $3,600) ; Arrears of holiday pay (Quantum to be determined) ; Costs reserved

Horo-Kirwera v Te Ha O Te Oranga O Ngati Whatua

8 Aug 2006, M Urlich, AA 257/06, (6 pages)

UNJUSTIFIED DISADVANTAGE - Applicant claimed grievances arose from steps respondent took to change organisational structure - Respondent submitted organisational review carried out fairly and reasonably - Maintained applicant not dismissed and position existed for her to take up - General Manager ("GM") announced changed structure and new roles at group meeting - Applicant raised concerns with GM about changes and manner in which announced - Took from his response would be no further discussion of issue - Applicant later told new role would also be changing - Applicant went on stress leave and sought exit package - Unfair and insensitive to advise applicant of impact of restructuring on her in front of staff who reported to her, and announce further restructuring by group email - Fair and reasonable that employee whose unique role to be affected by restructuring told in private - Further unfairness as not alerted to right to seek advice and have representative present - Respondent unreasonably failed to consult applicant about restructuring proposal - Unreasonably failed to take up applicant's subsequent offer to consult over restructuring, which presented opportunity to remedy previous failure - Accepted respondent's intention was to find redeployment options for all affected staff - Failed to treat applicant fairly and sensitively through restructuring process - Unjustified disadvantage - UNJUSTIFIED DISMISSAL - Constructive dismissal - Applicant never returned from stress leave - Clear applicant's original position no longer existed and left with fraction of former duties - Appropriate to explore redeployment options - Nothing happened after respondent provided information about new position - No resignation or dismissal - No evidence to support claim during stress leave respondent repudiated employment agreement and applicant accepted repudiation - No constructive dismissal - Length of service three years - Operations manager

Result: Application dismissed (Unjustified dismissal) ; Application granted (Unjustified disadvantage) ; Compensation for humiliation etc ($6,000) ; Costs reserved

James v John Webster Chief Executive Officer Unitec Institute of Technology

4 Aug 2006, RA Monaghan, AA 256/06, (19 pages)

UNJUSTIFIED DISMISSAL - Serious misconduct - Summary dismissal - Applicant introduced restructuring proposal at respondent - Tutors formed group to oppose it - "Get well" card circulated in academic community - Claimed respondent "sick" institution for employing applicant and listed allegations about him - Card prompted investigation - Applicant suspended - Respondent dismissed on basis applicant: (1) Failed to discharge responsible stewardship of resources when waived fees of two students failing to discharge; (2) pursued personal relationship with student ("C") after waiving her fees; (3) and (4) bullied or threatened colleagues in two incidents - Not unfair investigation uncovered information forming ground of dismissal - Reasonably concluded C more credible witness - Applicant previously received informal warnings and counselling about "inappropriate" behaviour - Not case where prior disciplinary warnings directly invoked to support dismissal - Respondent not estopped from considering employment history - No failure to properly investigate actions of group - No evidence group set on undermining applicant or securing his dismissal - Claimed respondent failed to provide documents in breach of Privacy Act 1993 - No jurisdiction to determine such breaches - No evidence relevant information not put to applicant - Grounds (1) and (2) serious misconduct justifying dismissal - (1) Reasonable conclusion waiver of fees deeply impaired or destructive of trust and confidence and failure to follow procedure would have detrimental effect on respondent - Conduct may have brought respondent into disrepute - (2) Pursuing personal relationship not serious misconduct in itself - However, it came at end of course of conduct following waiver of fees - Reasonable conclusion conduct capable of bringing respondent into disrepute and of amounting to serious misconduct under disciplinary policy - Grounds (3) and (4) less than satisfactory conduct but reinforced reasonableness of respondent's overall loss of trust and confidence - In all circumstances dismissal open to respondent - Dismissal justified - UNJUSTIFIED DISADVANTAGE - Suspension enabled investigation to proceed without ongoing conflict - Applicant warned of possibility of suspension and reasons for it before decision made - Suspension justified - No disadvantage on any grounds submitted - Length of service nine years - School department head

Result: Application dismissed ; Costs reserved

Kneebone v Schizophrenia Fellowship Waikato Incorporated

13 Feb 2007, V Campbell, AA 31/07, (41 pages)

UNJUSTIFIED DISADVANTAGE - Applicant claimed subjected to several incidents of bullying by co-worker ("M") - Alleged respondent breached duty to provide safe workplace - Also claimed breached trust, confidence and good faith - Respondent made policy change which forbade applicant from having family members as clients - Disadvantaged by manner change implemented - Change heightened applicant's perception of bullying - Received written warning for incident with committee member - Burden to show proper and impartial consideration given to applicant's explanation not discharged - Disadvantaged by written warning - While timing unfortunate, warning did not breach obligation to act in good faith - Fair and reasonable employer would have appointed different committee member to investigate incident and decide disciplinary action - Actions contributed significantly to applicant's deteriorating health - Unjustified disadvantage - UNJUSTIFIED DISMISSAL - Constructive dismissal - Respondent unaware applicant suffered from seizures - Resigned after period of sick leave - Claimed respondent's action made it untenable to continue working given effect on health - No evidence M intended to undermine or cause fear or distress in applicant or that behaviour intimidating, malicious or insulting - Respondent met obligations when investigated applicant's concerns and attempted to resolve them - Reached reasonable conclusion source of problem personality clash - Respondent did everything reasonably could in light of applicant's refusal to participate in mediation and resolution processes - On balance of probability, respondent not responsible for applicant's situation - Allegations serious and evidence needed to be convincing - Applicant and M had difficulties working together but did not mean bullying occurred - Facts did not support constructive dismissal finding - No constructive dismissal - Authority satisfied claims relating to constructive dismissal, breaches of Health and Safety in Employment Act 1992, and good faith provisions relied on same facts - Those claims sufficiently addressed by findings related to constructive dismissal - Remedies - Applicant rude and uncooperative in incident with co-workers - Contributory conduct 25 percent - Length of service five years - Mental health worker

Result: Application granted (Unjustified disadvantage) ; Compensation for humiliation etc ($6,000 reduced to $4,500) ; Application dismissed (Unjustified dismissal) ; Costs reserved

Ponsonby v Torlesse Wines Ltd

2 Aug 2006, H Doyle, CA 114/06, (11 pages)

UNJUSTIFIED DISMISSAL - Constructive dismissal - Applicant worked from home as wine sales representative - Respondent in poor financial position, believed urgent changes necessary - Respondent concerned about applicant's sales and reporting - Requested applicant immediately change from home base to warehouse and purchase cell phone on behalf of respondent - Respondent introduced changes to way applicant worked and conducted performance meeting - Applicant claimed meeting "traumatic" - Also saw newspaper advertisement for salesperson at respondent - Applicant took stress leave - Claimed subjected to course of conduct by respondent breaching its duty to provide fair and reasonable treatment and safe workplace - Respondent claimed resigned following reasonable performance management of sales level - Authority satisfied resignation attributable to respondent's actions rather than other reasons - Meeting not abusive or so unreasonable to conclude conducted in dismissive or repudiatory manner - Entitled to raise performance concerns and advise wanted improvement - On balance of probabilities no deliberate attempt to mislead applicant about advertisement or that additional salesperson sought to replace her - Insensitive letter to applicant on stress leave not actions of fair and reasonable employer - Not acknowledging concerns raised by applicant after meeting not repudiatory conduct - Communications while on stress leave not blanket disregard of obligation to provide safe work environment - No course of conduct with dominant purpose of coercing resignation - Breaches not sufficiently serious to make substantial risk of resignation reasonably foreseeable - No constructive dismissal - UNJUSTIFIED DISADVANTAGE - Respondent made too many demands and changes overwhelming applicant - Disadvantaged by changes including request to work at warehouse and purchase cell phone - Led applicant to believe was absence of trust in her - No consultation - Should not have sent letter pressuring applicant about performance while on stress leave - Unjustified disadvantage - Length of service one year one month - Sales representative

Result: Application dismissed (Unjustified dismissal) ; Application granted (Unjustified disadvantage) ; Compensation for humiliation etc ($6,500) ; Costs reserved

Raddock v Air New Zealand Ltd

19 Mar 2007, V Campbell, AA 79/07, (8 pages)

UNJUSTIFIED DISADVANTAGE - Applicant alleged disadvantaged when randomly selected to take drug test - Applicant's role considered "safety sensitive" under respondent's drug testing policy - Policy already considered in NZ Amalgamated Engineering Printing and Manufacturing Union Inc and Ors v Air New Zealand Ltd and Anor (cited below) - Pursuant to Employment Court directive, respondent consulted with applicant's union on definition of "safety sensitive" areas and roles - Union responsible for obtaining feedback from members - Applicant claimed personally not consulted and failure meant unaware role caught in random testing regime - Authority did not accept applicant unaware role caught in classification of "safety sensitive" - Respondent met obligations to consult union and affected employees - Not satisfied applicant disadvantaged - Even if random selection amounted to disadvantage, Authority not satisfied unjustified - Also, applicant took test and returned negative result - No further action taken by respondent - Evidence did not go far enough to justify disadvantage finding - Had applicant refused test and been subject to investigation and disciplinary action, result may have been different - No unjustified disadvantage - Length of service not specified - Logistics Controller

Result: Application dismissed ; Costs reserved

Stevens v Unibag Packaging Ltd

1 Mar 2007, G J Wood, WA 32/07, (10 pages)

UNJUSTIFIED DISMISSAL - Whether dismissed or abandoned employment - Constructive dismissal - Applicant 16 years old - Raised concerns with union about treatment by supervisor, and pay - Met with manager, conversation focused on pay concerns - Insulted by supervisor on return from meeting - Applicant left work early once supervisor gone - Authority considered left because had enough of supervisor's treatment and upset pay rate not changing - Applicant absent two days without contact - Away longer than permitted by abandonment clause in employment agreement - On return to work, given letter terminating employment - Applicant lacked good cause to absent himself without notification - Claimed no access to phone - While correct, not good cause for failure to contact respondent - Although applicant subject to unacceptable treatment, could have taken up matter with manager - Fact prepared to wait until supervisor left showed could have dealt with concerns while remaining at work - Lwin v A Honest International Co Ltd (cited below) distinguished as applicant had abandonment clause in agreement - Respondent under no obligation to contact applicant - Employment abandoned - Supervisor's behaviour factor in applicant leaving - However, main reason was pay - As no breach of contract regarding pay, no constructive dismissal - UNJUSTIFIED DISADVANTAGE - Supervisor's behaviour disadvantaged applicant - Part of reason subsequently lost job - Applicant felt unsafe and bad about whole working experience, serious matter for young worker trying to make ends meet for family while attending school - Remedies - Were it not for contractual abandonment provision would have reinstated applicant - Should respondent offer reinstatement would seem appropriate no remedy for disadvantage should apply in addition, especially as respondent paid wages until investigation meeting - Recommendation respondent review staff supervision policies and training - Length of service 11 weeks - Packer

Result: Application dismissed (Unjustified dismissal) ; Application granted (Unjustified disadvantage) ; Compensation for humiliation etc ($4,000) ; Recommendation ; Costs reserved

Whitehouse v Moorhouse Construction Ltd

28 Jul 2006, P Montgomery, CA 110/06, (6 pages)

UNJUSTIFIED DISADVANTAGE - UNJUSTIFIED DISMISSAL - Poor performance - Employment agreement unsigned but recognised by respondent as governing relationship - Applicant issued written warnings regarding performance and requested to attend meeting - At start of meeting told would not be dismissed - Dismissed at meeting for refusing to carry out instructions and follow protocols - Previous warnings taken into account - Applicant not advised employment at risk, instead told position under "review" - Authority strongly of view review required employer to put concerns on table, invite and listen to response, and take time to consider response before deciding course of action - Did not happen here - Not advised entitled to have representative present - Significant as required by employment agreement - Authority also firmly of view that had parties had legal representation at meeting outcome would likely have been significantly different - Unjustifiably disadvantaged by first warning and by being denied right to respond to it - Procedure so flawed and lacking in natural justice that issue of contribution negated - Meeting outcome not predetermined but resulted from Director's loss of composure - Dismissal unjustified - Remedies - Applicant sought lost remuneration from dismissal to date of investigation - Respondent argued could not be expected to pay applicant who decided to enter own business and was unable to draw on its proceeds for significant period - Length of service 23½ months - Construction Manager

Result: Application granted ; Reimbursement of lost wages ($13,000) ; Arrears of holiday pay (6 percent of lost wages) ; Compensation for humiliation etc ($17,000) ; Arrears of wages (bonuses)(Quantum to be determined) ; Costs reserved

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