Dismissal of mortgage managers for breach of
06 Oct 06Mr Trotter was employed as a mobile mortgage manager by the BNZ. A Mr Parkinson was his area manager. In June 2003 the BNZ introduced a new policy under which it would no longer deal with mortgage brokers. Mortgage managers were required to investigate whether the bank had existing business relationships with mortgage brokers, and if so to terminate those relationships. Mr Trotter had an existing relationship with a business known as the Alliance Group. Messrs Trotter and Parkinson investigated the relationship and concluded that the Alliance Group was not a broker, so the business relationship could continue.
In November 2003 and February 2004 Messrs Parkinson and Trotter were seconded to different roles in the United Kingdom. The mortgage manager that replaced Mr Trotter raised concerns with the BNZ over the nature of the relationship with the Alliance Group and whether that business was in fact a broker. This resulted in the BNZ instigating a disciplinary investigation against Messrs Parkinson and Trotter, alleging amongst other things that the payment of incentives directly to the Alliance Group meant that it was a broker, and therefore the relationship was in breach of the "no broker" policy. Messrs Trotter and Parkinson were dismissed by the BNZ for breaching the policy and on the basis of a loss of trust and confidence.
The Employment Relations Authority concluded the bank did not have enough information upon which it could fairly and reasonably conclude that the Alliance Group was in reality being paid a fee for its services and was therefore a broker. It ruled that both dismissals were unjustified. The Authority awarded Mr Trotter 4 months salary and $10,000 compensation for injury to feelings, and Mr Parkinson 5 months pay and $20,000 compensation for injury to feelings.
In November 2003 and February 2004 Messrs Parkinson and Trotter were seconded to different roles in the United Kingdom. The mortgage manager that replaced Mr Trotter raised concerns with the BNZ over the nature of the relationship with the Alliance Group and whether that business was in fact a broker. This resulted in the BNZ instigating a disciplinary investigation against Messrs Parkinson and Trotter, alleging amongst other things that the payment of incentives directly to the Alliance Group meant that it was a broker, and therefore the relationship was in breach of the "no broker" policy. Messrs Trotter and Parkinson were dismissed by the BNZ for breaching the policy and on the basis of a loss of trust and confidence.
The Employment Relations Authority concluded the bank did not have enough information upon which it could fairly and reasonably conclude that the Alliance Group was in reality being paid a fee for its services and was therefore a broker. It ruled that both dismissals were unjustified. The Authority awarded Mr Trotter 4 months salary and $10,000 compensation for injury to feelings, and Mr Parkinson 5 months pay and $20,000 compensation for injury to feelings.
