Service and Food Workers Union Nga Ringa Tota Incorporated v Cerebos Greggs Limited

IN THE COURT OF APPEAL OF NEW ZEALAND

CA385/2011
[2011] NZCA 431

BETWEEN SERVICE AND FOOD WORKERS UNION NGA RINGA TOTA INCORPORATED
Applicant

AND CEREBOS GREGGS LIMITED
Respondent

Hearing: 23 August 2011

Court: Ellen France, Randerson and Harrison JJ

Counsel: P J Cranney for Applicant
J Latimer for Respondent

Judgment: 31 August 2011 at 2.30 pm

JUDGMENT OF THE COURT

AThe application for leave to appeal is granted on the following question of law:
(a)Did the Employment Court err in concluding that the extra week’s leave, for those employees qualifying for that leave, ceased to be an enhanced or additional entitlement on 1 April 2007 and became part of the four weeks annual holidays provided by the Holidays Act 2003?

BCosts on the application for leave are reserved.

REASONS OF THE COURT
(Given by Ellen France J)

We have decided leave should be granted on the question identified by Mr Cranney for the Service and Food Workers Union, the applicant. We do not give reasons, in accordance with r 27(2) of the Court of Appeal (Civil) Rules 2005.

Solicitors:
Oakley Moran, Wellington for Applicant
Sellars & Co, Helensville for Respondent

CaseChat Overview and Summary

The Service and Food Workers Union Nga Ringa Tota Incorporated, acting on behalf of its members, applied for leave to appeal to the Court of Appeal of New Zealand against a decision of the Employment Court. The respondents to the appeal were Cerebos Greggs Limited. The dispute centred on the interpretation of an employee leave entitlement that had been altered by the company, which the Union argued resulted in a reduction of benefits for the employees. The Court of Appeal, comprising Ellen France, Randerson, and Harrison JJ, heard the application on 23 August 2011.

The primary legal issue the Court of Appeal was required to decide was whether the Employment Court had erred in its interpretation of the leave entitlements as stipulated by the Holidays Act 2003. Specifically, the Court had to determine if the extra week’s leave for qualifying employees ceased to be an enhanced or additional entitlement on 1 April 2007 and became part of the statutory four weeks annual holidays. This interpretation directly impacted the employees' rights and the obligations of Cerebos Greggs Limited.

In granting the leave to appeal, the Court of Appeal found merit in the argument presented by the Service and Food Workers Union that the Employment Court may have misconstrued the statutory provisions regarding employee leave. The Court held that the question identified by the applicant’s counsel warranted further judicial consideration to ensure the correct application of the law and the protection of employee rights. The Court reserved costs on the application for leave pending the outcome of the appeal.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established