The Employment Relations Authority (ERA) recently dealt with a case involving a worker's claim for unjustified dismissal for redundancy and his application to join a parent company as a second respondent.
The matter concerned a worker who claimed his dismissal from his employer was unjustified and sought to bring penalty claims against the parent company.
The worker argued that the parent company, which was a shareholder of his employer, should be joined to the proceedings because it had complete control over which wholly-owned subsidiary he worked for and switched him between entities at will.
The case highlights the circumstances under which parent companies can be joined to employment proceedings and the threshold for dismissing claims as frivolous or vexatious.
Worker files joinder application
The worker submitted that the parent company should be joined to the proceedings on several grounds.
He argued that the absence of an employment relationship between himself and the parent company, and the fact that the companies were separate legal entities, were not relevant to determining whether the parent company should be included in his case.
The worker contended that if an order was made against his employer and enforcement action was later needed against the parent company, then the parent company would be directly affected by any decision.
He also pointed to his updated claim which sought penalties against the parent company under employment legislation.
The worker...
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