A sales manager at a coffee supplier in Christchurch, New Zealand, has been awarded NZ$55,000 (US$37,009) in lost wages and compensation after he was found to have been constructively dismissed.
According to Stuff, Rick Whitfield took Coffee Distributors to the Employment Relations Authority, claiming he had been attracted to the job by a commission element that never materialised. The company attested it had never been in a financial position to offer him a bonus and that his performance had not merited it.
Meanwhile, Whitfield's role, which was meant to be managerial, was effectively downgraded when a new general manager was appointed to review the business. The new manager gave him a written warning for allegedly making derogatory remarks about one of the company's directors to a client.
Employment Relations Authority member Andrew Dallas said in his determination: "Whitfield said the letter came as quite a shock because he had never been spoken to about the allegation, let alone been subject to an investigation about it. Mr Whitfield said he could not recall saying anything akin to what was alleged."
Less than a month later, Whitfield was told he was being given a second warning. His solicitor subsequently wrote to Coffee Distributors raising three personal grievances - about the commission deal and the two warnings. The company replied that such action had been appropriate because it had been instructed to assist with his performance management.
A month later, before Christmas, Whitfield's manager asked for his car and phone back during the holiday period. Whitfield said he believed Coffee Distributors went down this route as they thought he was going to leave. The company said that returning the items was necessary so it could continue to receive and deliver client orders.
Then, when collecting the mail a few days later, Whitfield discovered a signed agreement with a new commission-based sales representative who was to cover part of his sales territory.
"Whitfield said at or about this time, he also noticed that his details had not been loaded into the payroll system for the period after Christmas 2017. He said the details of all other employees were, however, loaded," Dallas said.
Whitfield described the situation as the last straw and claimed he had been constructively dismissed. He sought an award of lost wages and compensation for hurt, humiliation and injury to feelings.
Dallas sided with Whitfield, ruling that his employment agreement made it clear there should have been a commission deal in place. The first written warning was given without process or justification, he said.
Whitfield was awarded NZ$30,313 (US$20397) as reimbursement for lost wages and NZ$25,000 (US$16,822) as compensation for humiliation.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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A sales manager at a coffee supplier in Christchurch, New Zealand, has been awarded NZ$55,000 (US$37,009) in lost wages and compensation after he was found to have been constructively dismissed.
According to Stuff, Rick Whitfield took Coffee Distributors to the Employment Relations Authority, claiming he had been attracted to the job by a commission element that never materialised. The company attested it had never been in a financial position to offer him a bonus and that his performance had not merited it.
Meanwhile, Whitfield's role, which was meant to be managerial, was effectively downgraded when a new general manager was appointed to review the business. The new manager gave him a written warning for allegedly making derogatory remarks about one of the company's directors to a client.
Employment Relations Authority member Andrew Dallas said in his determination: "Whitfield said the letter came as quite a shock because he had never been spoken to about the allegation, let alone been subject to an investigation about it. Mr Whitfield said he could not recall saying anything akin to what was alleged."
Less than a month later, Whitfield was told he was being given a second warning. His solicitor subsequently wrote to Coffee Distributors raising three personal grievances - about the commission deal and the two warnings. The company replied that such action had been appropriate because it had been instructed to assist with his performance management.
A month later, before Christmas, Whitfield's manager asked for his car and phone back during the holiday period. Whitfield said he believed Coffee Distributors went down this route as they thought he was going to leave. The company said that returning the items was necessary so it could continue to receive and deliver client orders.
Then, when collecting the mail a few days later, Whitfield discovered a signed agreement with a new commission-based sales representative who was to cover part of his sales territory.
"Whitfield said at or about this time, he also noticed that his details had not been loaded into the payroll system for the period after Christmas 2017. He said the details of all other employees were, however, loaded," Dallas said.
Whitfield described the situation as the last straw and claimed he had been constructively dismissed. He sought an award of lost wages and compensation for hurt, humiliation and injury to feelings.
Dallas sided with Whitfield, ruling that his employment agreement made it clear there should have been a commission deal in place. The first written warning was given without process or justification, he said.
Whitfield was awarded NZ$30,313 (US$20397) as reimbursement for lost wages and NZ$25,000 (US$16,822) as compensation for humiliation.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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