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Assignment 2- Applied Management

NZDB

1. LO 3 – Legal provisions to analyze the employment agreement for nature of the relationship
2. LO 4 – Legal provisions for the creation of employment agreement 

 Bachelor of Applied Management

LO 3 –     Interpret and apply the main legislative provisions and common law principles involved in the development of employment agreements and in offers of employment and variation to agreements. Assignment 2- Applied Management

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Task 1. [20 marks]

 Find the following case:

Three Foot Six Ltd v Bryson (2005) 7 NZELC 97,653, [2004] 2 ERNZ 526 (CA)

• Briefly summarize the facts and then analyse how the five tests were applied by the court in determining the status of Mr Bryson
• (10 marks)
• Apply those tests and determine the status of the Sally in the following situation:

Sally has been employed by Agrotech Limited for five years as a sales representative. She drives a company car, manages 4 other salespersons, and is paid a salary of $85,000. Sally has been very successful, but she is unhappy with her pay rate. She feels that her value to the company is much more than she is paid and wants a share of the profit.

Sally meets with the directors, Bert and Ernie.  After some negotiation they agree the following contract for 12 months which can be renewed by agreement for a further 48 months.

• Sally will be paid a retainer of $25,000 per annum and for this she will be available to the company at any time and, during the contract, will not to work for any competitor.
• Sally will be paid a gross amount of 15% of the sales she generates.
• Sally will have control of her time and work, but must achieve sales of $750,000 per annum.
• Sally will employ an assistant to fulfill all administrative work.
• Sally will continue to work areas of New Zealand decided by the company.
• All equipment including cars are to be provided by Sally.

Sally is happy with this. She expects to generate $1,000,000 of sales. She agrees and signs.

This arrangement continues for 7 months. After this time the company advise Sally that they will pay her retainer for the remainder of the 12 month contract but will not renew. They also are changing their product range and the new product range will not include the products Sally has been selling so once she has sold the current stock there will be nothing more to sell.

Sally is very unhappy now. She believes she has been made redundant and that the company should have consulted her on these changes in advance. Her employment agreement before this arrangement included redundancy.

Discuss whether Sally is an employee and therefore if she has the rights relating to be advised of changes which adversely affect her and to receive redundancy.

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Task 2: [15 marks]

• Critique the process for the creation of a collective agreement, including the mediation and facilitation process. Refer to the relevant sections of the legislation. Your critique should discuss whether the process achieves the outcomes intended by the act, (including what happens if the process fails to reach an agreement). Refer to the relevant sections of the legislation. (7 marks)
• Provide a brief explanation of how the existence of a collective agreement affects the process of employing the new employee. Provide your opinion on whether this is an effective mechanism to fully inform and protect the new employee. Refer to the relevant sections of the legislation. (3 marks)
• Analyze the process by which collective and individual employment agreements are varied. Include the rights of the employee when changes are made. In your answer also consider IF an employer can make minor and major changes. You do not need to consider variation clauses in the agreement. Set out the main principles only. Your analysis is more than a description. It should show how the law affects the rights and needs of the two parties. Refer to the relevant sections of the legislation. (5 marks)

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Task 3: [25 marks]

In this task you must create and analyze an employment agreement. You can use the employment builder on the employment NZ website for the agreement. You will need to make assumptions. You will also find one case where the court has considered issues in an employment agreement. Choose any area relating to any of the terms you include in your agreement. Assignment 2- Applied Management

The agreement is to be an individual employment agreement between.

• The employer – a manufacturer of ice cream cones.
  • The business operates 24 hours per day, 7 days per week and there are shifts. The shifts are 12 hour shifts of 4 days on and 4 days off.
  • The position is an ice cream quality tester. This person takes samples of ice cream and, using a testing machine, tests the quality and records the outcomes.
  • Safety glasses and boots are to be worn at all times. Hair must be under a net and employees must wear overalls at all times.
  • The position will have a 90 day trial.
  • A probationary period will apply for 12 months while training.
  • The position is permanent full time.
  • Wages are the minimum wage to be reviewed at 6 months.
• Employee
  • Aged 23

Your submission for this task is to be set out with answers in the following order.

• A table analyzing the employment agreement. Do not print out the agreement from the web site. Use the website to assist your work, but use only this table for the agreement. (20 marks)
• Find and explain ONE case where the courts have considered the application of the terms of an employment contract. Set out the basic facts, a brief explanation of what the issue was and what the court decided. (10 marks)

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