PGC settles with former exec in bonus pay stoush

The Employment Relations Authority.

Pyne Gould Corporation and its former financial controller James West have settled their Employment Court fight over his sacking and a $140,000 bonus.

Although the dispute was due to be heard this week, the NZX-listed company has announced a settlement has been reached.

PGC, in announcing the settlement, said it accepted that West acted on instructions when paying bonuses in 2012 and "genuinely believed that he had the authority to arrange the payments".

West last year was found to have a personal grievance against his former employer 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.

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.

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 then challenged aspects of the ERA's decision to the Employment Court but have now settled.