ERA finds pattern of forced resignations before leave at Subway franchise
The owner of a Subway franchise in Christchurch has been found to have unjustifiably and constructively dismissed an employee after repeatedly requiring her to resign before taking annual leave, then making her redundant when the store was sold.
Sophie Kennett began working as a Sandwich Artist for Polygon GY Developments Limited, which operated three Subway franchises in Christchurch, in March 2023. She was later set for promotion to Assistant Restaurant Manager after moving to the company's Bishopdale store.
The dispute traces back to October 2023, when Kennett first applied for leave over the Christmas and New Year period, the beginning of a pattern that recurred a year later, according to the Employment Relations Authority (ERA).
When Kennett raised the leave request with director Stan Greene, she was told she needed to resign and sign a new employment agreement in order to take the time off, with a promise of an Assistant Manager role on her return. Greene disputed this account, saying resignation was only ever presented as an option.
A near-identical situation arose in December 2024, when Kennett again sought extended leave. Following a heated exchange at the Bishopdale store on December 11, Kennett resigned, effective December 20, after what she said were assurances she would return to work in mid-January 2025.
The day before that resignation took effect, Greene signed a Sale and Purchase...
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