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Home / Business / Economy / Employment

Judge tells PGC to reveal data on bonuses

NZ Herald
10 Aug, 2014 05:00 PM2 mins to read

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The bonuses issue led to a dispute between James West and PGC which saw him leave the company after he had repaid it. Photo / Thinkstock

The bonuses issue led to a dispute between James West and PGC which saw him leave the company after he had repaid it. Photo / Thinkstock

Pyne Gould Corporation has been forced to disclose documents to the company's former financial controller, who is fighting it over a bonus worth $140,000.

James West was found to have a personal grievance against his former employer, wealth management business PGC, after he was dismissed in April 2012.

His sacking, which the Employment Relations Authority determined took place without adequate investigation by the company, followed him paying bonuses in 2012 to four executives, including himself.

At ERA hearings last year, West said he had instructions to pay the bonuses and that provision for them had been made in financial statements.

The bonuses issue led to a dispute between West and PGC which saw him leave the company after he had repaid it. He took action claiming he had been unjustifiably dismissed and wanted lost wages, a penalty and what he said was the outstanding bonus payment of $140,000.

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But ERA member Paul Stapp in July last year said there were doubts "around the proper authority surrounding the matter of the bonus payment" and dismissed West's claim to it.

Stapp, however, said PGC had "completely failed to meet its obligations to give Mr West a reasonable opportunity to respond to the employer's concerns".

"It failed to put the allegations upon which Mr West was dismissed, and he was disadvantaged without any opportunity to properly respond to the allegations before the dismissal," Stapp said.

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Stapp awarded West $120,833 in lost wages, $2743 in interest, and $10,000 in compensation for hurt and humiliation. PGC also agreed to pay West $22,065 in holiday pay and interest.

Both PGC and West have challenged aspects of the ERA's decision to the Employment Court.

As part of that dispute, West sought disclosure of documents from his former employer, including board minutes approving the company's 2011 financial statements and executive bonuses.

He also wanted access to emails relating to that board meeting.

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PGC said some of these documents were legally privileged and, in any event, no documents existed in the category which West was asking for.

But Judge Bruce Corkill said this objection was "ill-founded" and that the PGC should disclose the documents requested to West.

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