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A teenage building apprentice was left confused when he suddenly received two weeks’ notice and was told there was not enough work - only to see a position similar to his advertised the next day.
Now, the Employment Relations Authority (ERA) has ruled that his employer, Jayu Developments (JDL) must pay nearly $30,000 in compensation for unfair dismissal.
The teenager was employed full-time by JDL, trading as Virgo Homes, in Whangārei in January 2023. His employment agreement had a two-week termination clause but no entitlements for redundancy.
Over the course of the year, the apprentice gained more responsibility being given a fuel card, opening the yard in the morning, and regular positive feedback from the company director, Neihana Pickering.
Owner of Jayu Developments, Neihana Pickering, was ordered to pay an apprentice for unfair dismissal.
When he received an email from Pickering in January 2024 stating that, due to a contract “disappearing”, Virgo Homes was experiencing a shortage of work and needed to make cuts, he was left confused about what was happening.
The teenager told the authority he had spent the previous day with Pickering who did not mention staff cuts.
“I regret to advise you that your position is no longer viable as of today, January 16 your two weeks’ notice comes into effect,” Pickering said in an email.
The next day the teen went on to jobseeker sites searching for a job and was surprised to see JDL advertising for an apprentice and a qualified builder to work on two-storey builds.
That same day he went to Pickering’s house to pick up his tools and was told to stop work immediately and would instead be paid in lieu.
An application to the authority for unfair dismissal was filed and said the immediate termination had an impact on his financial obligations and his mental health.
Pickering filed a statement to the ERA but when the investigation meeting in Whangārei was set down in December, he told the authority by email that he no longer lived in the North and it was too far to attend.
Pickering told the authority he did not have the time, resources or energy to deal with the matter.
An audio-visual link was provided to Pickering, who was still reluctant to attend and when the meeting began, he could not be contacted and the hearing proceeded in his absence.
Pickering said in his statement the company had been under huge financial pressure, and he had held regular meetings with staff updating them on what was occurring.
The ERA awarded the teenager almost $30,000 for unfair dismissal and humilation.
The teen said he was unaware of what was happening with the business and many of the work meetings took place in venues where alcohol was served, and he was not allowed to attend due to his age.
Pickering said although he no longer wanted to be involved in the contracts, he had previous commitments with the main contractor to supply a builder and apprentice and therefore advertised the positions out of good faith.
Authority member Sarah Blick said in her recently released decision it was clear the teen had been unjustifiably dismissed.
Blick pointed out that when redundancy occurs, employers must provide clear information and details of how the process will be implemented.
Blick also stated that employees must be allowed to comment before finalisation of redundancy.
“JDL did not give [name] any notice or fair warning of its intention to make changes to the business or that he could possibly lose his employment.
“JDL’s explanation of why it advertised roles the day after giving notice to [name] is unclear and if it was information relevant to the decision not to continue [name] employment, he should have been given access to that information,” the decision said.
JDL was ordered to pay $15,000 in compensation and $13,260 in lost wages.
Te Tai Tokerau Trades Training creativity connector, Maea Pivac told NZME many apprentices are straight out of high school, and it was important they were aware of their rights.
“If they haven’t heard it at school then what would they know about employment rights? If they see the hourly rate they think ‘That’s a lot’ but the hourly rate needs to cover their tools, sick leave, and lots of our taitamariki don’t know that.
“Some people may feel powerless and feel they have to sign because they don’t want to lose their apprenticeship.”
Pivac said anyone signing up as an apprentice who was unsure about the agreement should seek advice from the citizen’s advice bureau or their tutors.
“It’s good to ask, it’s good to get advice to ensure all employment rights are covered,” Pivac said.
NZME approached Pickering for comment, but he did not respond. A caregiver for the teen didn’t want to comment.
Shannon Pitman is a Whangārei based reporter for Open Justice covering courts in the Te Tai Tokerau region. She is of Ngāpuhi/ Ngāti Pūkenga descent and has worked in digital media for the past eight years. She joined NZME in 2023.
