Hawke’s Bay Employer Penalized for Ignoring Employment Dispute

A Hawke’s Bay employer, Complex Forme Ltd., faced serious repercussions after neglecting an Employment Relations Authority (ERA) case brought against it. The case highlighted significant lapses in employment practices, including verbal job offers without formal agreements and dismissals without proper warnings.

Jack Wills, a former pool technician with Taylor Pool and Spas, shared his troubling experience during a hearing in January 2024. He recounted how he was offered a position at Complex Forme in Hastings by manager Geraldine Smith while he was working at the facility as a member. The job was verbally promised to him at a rate of $30 per hour, leading him to resign from his previous employment.

Despite beginning work immediately, Wills repeatedly requested a written employment agreement but was consistently told it was not the right time to approach the Australian owners. The situation escalated when he was informed that his hourly wage was not approved by management, leading to his dismissal without any payment for his work.

The case drew attention to the critical question of whether an employment relationship existed. Employment lawyer Shelley Eden explained that Wills’ situation—being placed on a roster, having his hours signed off, and receiving instructions via text—indicated a legitimate employment relationship. The ERA member, Alyn Higgins, affirmed that the absence of a finalized agreement does not negate the existence of an employment relationship as long as there was mutual intention and acceptance.

Higgins determined that Wills’ dismissal was both procedurally and substantively unjustified. The ERA also established a personal grievance for unjustified disadvantage due to non-payment of wages. Complex Forme was ordered to pay Wills a total of $17,500 for emotional distress and lost dignity, along with $960 in unpaid wages, $76.80 for lost holiday pay, and $6,240 for lost wages. Additionally, the company faced a penalty of $750 for failing to provide a written employment agreement promptly, reflecting a violation of the Employment Relations Act 2000.

Complex Forme did not participate in the ERA hearing, which Eden characterized as a significant error. “Ignoring claims will not protect you,” she stated. The case serves as a stark reminder of the essential nature of proper employment practices and the potential consequences of neglecting employee rights.

Wills’ experience emphasizes the importance of formal agreements in employment relationships, as well as the need for employers to engage constructively with issues rather than adopting a dismissive approach.