Long-term staff at a Dunedin-based food company
were entitled to a fifth week of leave when holiday laws gave all New
Zealanders a minimum of four weeks off, the Court of Appeal has ruled.
Service
and Food Workers Union members at Cerebos Greggs were originally
entitled to three weeks leave, while staff with six years service or
more were entitled to an additional week.
But when the legislation
changed to make all New Zealanders eligible for a minimum of four weeks
annual leave took effect in 2007, the company said the long-term staff
were still only eligible for four weeks leave.
The Employment
Relations Authority originally sided with the union, but an Employment
Court judge then ruled in favour of the company.
Three Court of Appeal judges have now ruled the Employment Court judge got it wrong.
They
said the Employment Court didn't give enough emphasis to the collective
contract, which says that "upon the completion of six years current
continuous service you will for the sixth and subsequent years be
entitled to an additional one week of annual holiday".
The judges
said they were satisfied this clause was designed to grant an extra week
of leave to the long-term staff at any time during the agreement.
"Its
purpose was to reward long service; the additional week was available
as a special benefit for all who satisfied specific eligibility
criteria," it said.
Cerebos Greggs was ordered to pay appeal costs to the union.
NZN