Worker claims business transfer happened without his knowledge
A cabinet maker worked for over a year before his employment transferred between two related companies without his knowledge or documentation.
The worker received a text message stating there would be no more work due to poor market conditions, with suggestions to find temporary work and promises of future re-employment.
The worker sought payment for lost wages, notice period, annual leave entitlements, and compensation for unjustified dismissal.
The dispute centered on whether proper consultation occurred, whether the worker received correct entitlements, and whether the director could be held personally liable.
The first company, trading as HY Kitchen, employed the worker as a cabinet maker from March 2023. He worked 40 hours per week throughout his employment. The business moved to new premises in March 2024, and the worker continued working at the new location.
Unknown to the worker, the operation of the business transferred from the first company to the second company. The worker's bank statements and IRD records showed he was paid by the first company for the first year and by the second company afterward. All payments from either company were labeled as "HY Kitchen wages."
Throughout his employment, the worker's work was arranged and directed by the director. The director was a director of the first company but not of the second company. The...
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