A Dunedin valuer has been awarded more than $16,000 by the Employment Relations Authority (ERA) after being unjustifiably dismissed by her employer.
Janice Taylor began work as a valuer at Barlow Justice Ltd in 2003, going on to become a shareholder and director of the company in 2007. In 2010, she resigned from her role as director and on-sold her shares for personal reasons.
When a shareholder agreement was signed, one of the company's directors, Yang Lek Tay, gave Ms Taylor a cheque for the money in her shareholder's account and a letter advising he would not be able to offer her a position as an employee.
Ms Taylor raised a personal grievance for unjustified dismissal. The key focus of the ERA's investigation was whether or not she was an employee of Barlow Justice.
If she was solely a director and shareholder, the authority had no jurisdiction to investigate and determine her personal grievance.
Mr Tay believed that when Ms Taylor became a shareholder and director, she was no longer an employee of the company, while she believed she continued to be employed.
Authority member Helen Doyle found "there was nothing discussed directly between Ms Taylor and Mr Tay about employment at the time she became a shareholder and director".
No written employment agreement was entered into when Ms Taylor began work in 2003, and neither the shareholders' agreement nor the company's constitution addressed any matters relating to a change of employment status when a person became a director of shareholder, Ms Doyle said.
Ms Taylor spent most of her time working as a valuer, received a salary from which PAYE was deducted, continued to have leave recorded and did not hold personal liability insurance, rather that was held by the company.
"I find that the totality of evidence . . . supports that Ms Taylor was employed under a contract of service notwithstanding that she was also a director and shareholder. I find that Ms Taylor was an employee of BJL," Ms Doyle said.
She also accepted Ms Taylor was "hurt and humiliated by her dismissal" and that there was "no fair process preceding the dismissal and the statutory obligations of good faith were not complied with".
Ms Doyle ordered Barlow Justice pay Ms Taylor $16,480.31, made up of $7852.14 in lost wages, $8000 in compensation, and $628.17 in holiday pay.
