Breach of Contract - Employment Relations Act 2000
Bolton v Nuwaiseeb Ltd (formerly Bright Tiles Ltd)
8 Nov 2007, D Asher, WA 150/07, (8 pages)
UNJUSTIFIED DISMISSAL - Redundancy - Purported fixed term did not meet statutory requirements as no reasonable grounds for end of employment - Sales down but applicant claimed did not understand employment at risk - Applicant rejected suggestion he take pay cut and no other cost saving alternatives raised - Applicant dismissed, but not paid redundancy notice in reliance on financial hardship term in employment agreement - Genuine redundancy - Respondent took minimal, but sufficient steps to put applicant on notice ongoing employment required improved sales and to explore alternatives - Dismissal justified - BREACH OF CONTRACT - Respondent failed to demonstrate why it invoked financial hardship clause - Had not shown payment of redundancy compensation would endanger its continuing viability as required by employment agreement - Applicant entitled to notice as redundancy payment and recalculation of holiday pay - Retail sale manager
Result:
Application granted (Breach of contract) ; Damages (Quantum to be determined) ; Application dismissed (Dismissal) ; Costs reserved
