The beauty of such a clause for employers is that it gives employers time to find new staff, since employees cannot just “up and leave”. If they do, they are at risk of forfeiting wages or outstanding holiday pay.
Remember notice clauses cannot apply to employers in the same way. Employers do not have the right to dismiss an employee with say, four weeks’ notice. If employers wish to dismiss an employee, they must follow specific procedures.
Recently, two Dunedin Night ‘n’ Day food store employees left their jobs without giving the required notice.
Their employment agreement required them to abide by the employee handbook, which contained a notice provision whereby four weeks notice of termination of employment was required. Where the employee failed to give notice, or failed to work any part of the notice period, four weeks wages had to be paid or forfeited by the employee.
The Night ‘n’ Day took the two employees to the Employment Relations Authority – and won. The Authority ruled both employees left their employment with the Night ‘n’ Day without giving the agreed notice; thus breaching the terms of their employment agreement. Both employees were directed to pay the equivalent of their wages in lieu of notice, a sum of money for the cost of unreturned uniforms and a filing fee of $70 each. This amounted to over $2000 each.
Moral of the story. Employers have employment agreements. Employees – read your agreements before you sign them and before you quit.
This article originally appeared in the Southland Times Work To Rule column. Mary-Jane Thomas is head of Preston Russell's employment law team. Contact her by clicking here
