Why do I need a written agreement with my business partners?
The recent case of Venkataramanujam v Ramasubramanian [1] demonstrates how important it is to have a clear understanding of the obligations business partners owe each other and the point at which those obligations will end. Background The Venkataramanuiams (“the Vs”) entered into an unwritten joint venture with the Ramasubramanians (“the Rs”). The parties would invest in property and […]
Duty to Warn: When is a contractor is responsible for design choices made by an owner?
Introduction A duty to warn is when a party may be held liable for damage or loss caused to another where the party had an opportunity to warn the other of the issues and failed to do so. We are regularly asked by contractors whether they have any responsibility in situations like the following: A […]
Retentions Must Be Returned – The High Court Confirms
Retentions under a subcontract are held on trust by the head contractor for the benefit of the subcontractor. If retentions are withheld, contingent on anything other than the subcontractor’s performance, they must be released immediately, as this is considered void and unenforceable. In Stevensons Structural Engineers 1978 Ltd (in liq) v McMillan & Lockwood (PN) Ltd & […]
Court takes Uber for joyride: but Government pulls the handbrake
The Court of Appeal has found four drivers were employees of Uber when they were logged into the Uber driver app. While Uber was successful in its challenge to the approach taken by Chief Judge Inglis of the Employment Court, the Court of Appeal agreed the result reached was correct. This is a landmark decision, […]
Employment Court widens the definition of gross earnings – Employers beware
Payments may now be part of ‘gross earnings’ despite being labelled ‘discretionary’ and as such be liable for inclusion in the calculation of holiday pay. Gross earnings provide the basis on which an employer calculates an employee’s annual holiday pay. If an employer does not get this calculation right based on a misunderstanding of what […]
Redundancy – Don’t Jump the Gun!
The Employment Relations Authority’s recent decision in Buckingham v St John (“Buckingham”) serves as reminder for employers to ensure their redundancy policies and procedures are sound. What started with some “minor procedural inadequacies” on behalf of employer St John led to an unfortunate misunderstanding with employee, Ms Buckingham, regarding the redundancy package set out in her employment […]
Succession Law changes considered by Parliament
The Government has recently provided its initial response to the New Zealand Law Commission (“the Commission”)’s recommendations to reform succession laws in New Zealand. Late last year, the Commission completed its comprehensive review of the current piecemeal laws which determine what happens to a person’s property when they die. The Commission has recommended significant changes […]
COVID-19 vaccinations in the workplace: Obligations for Employers (Part 1)
Introduction: New Zealand’s vaccination rollout has gathered pace with approximately 782,000 Kiwi’s now fully vaccinated. As vaccination rates increase with the availability of the Pfizer vaccine (Vaccine) and the anticipated easing of some border restrictions, a number of questions from employers and employees will arise about their obligations and rights when it comes to workplace […]
Practical Ways of Recovering a Debt: Letters of Demand
From time to time you may need to take formal steps to recover a debt owed to you in the course of providing your services. For example, you may enter a contract to provide transport for private hire, and/or have clauses which require the customer to reimburse for any damage or cleaning requirements after services […]
Restraint of Trade Clauses in Employment Agreements – Enforcement remains available to employers.
The Employment Relations Authority (“the Authority”) decision O’Brien v Discovery New Zealand Ltd issued a firm reminder that properly drafted restraint of trade provisions can and will be enforced against employees seeking to jump ship. Former Political Editor for NewsHub, Tova O’Brien (“Ms O’Brien”) sought to end her employment with Discovery (Newshub’s parent company) at the conclusion […]