Ordered to pay bonuses

The Employment Relations Authority (ERA) this week ordered a Timaru farm machinery sales company to pay a former employee more than $12,000 in unpaid bonuses.

ERA member Helen Doyle found that sales manager Richard Anderson was entitled to receive $12,150.75 from Clough Agriculture Ltd, despite the fact he had resigned from his position before the end of the financial year.

Mr Anderson claimed the company had paid him an incorrect amount for bonuses for the 2007-08 year and had failed to pay any bonus for the 2009-10 year.

Clough Agriculture Ltd had attested that Mr Anderson had agreed to receive an additional payment after he raised the issue of the incorrect bonus, but said it had no obligation to pay a "discretionary" bonus for 2009-10 because it was paid contractually on a pro-rata basis and Mr Anderson had left the company before the end of the financial year.

However, although the ERA found Mr Anderson was entitled to bonus payments for both years in question, it did not award a penalty for breach of contract.

Ms Doyle said there had not been a wilful breach, but there had been legal issues in the case that required "resolution" between the two parties.


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