The ERA found no signed agreements and no fair process before dismissal
A New Zealand restaurant's reliance on unsigned fixed-term contracts led to an unjustified dismissal finding and a $26,000-plus award on 30 March 2026.
The Employment Relations Authority determined that Bookieland Limited, operator of the Mussel Pot restaurant in Havelock, unjustifiably dismissed chef Tracy Alpar after a working arrangement built on unsigned and unenforceable fixed-term agreements fell apart during a seasonal close-down.
Ms Alpar had worked at the Mussel Pot for approximately 14 years before Bookieland purchased the business in May 2022. She was offered and accepted employment with Bookieland from September 2022 and continued working at the Mussel Pot as a chef, with the restaurant closing each winter for approximately three months while she travelled overseas.
In May 2024, shareholder Susana Wong told Ms Alpar the business was being marketed for sale and that she would not be on the list of employees to transfer to any new employer. Ms Alpar says she did not understand her employment to have ended. In a conversation on 25 May 2024, she said she would see Ms Wong for work in September, and Ms Wong replied with words to the effect of "maybe not. Hopefully we have sold." Ms Alpar vacated the on-site accommodation, which Ms Wong described as a "financial perk" of the arrangement, before travelling overseas.
In August 2024, Ms Alpar sent a WhatsApp message asking when she was due back at work. On 12 August 2024, Ms Wong replied: "We dealing with another potential buyer currently. So we just run with very low staff in case go through the deal. Think we are fine for staff now." Ms Alpar appears to have responded with a thumbs up emoji.
Ms Alpar also found a Facebook post on the Mussel Pot's page from May 2024 that appeared to show the restaurant advertising for a chef. The post recorded that Ms Wong and Mr Arnetoli were the owners of the Mussel Pot and were "looking for a long term chef to join their kitchen," and offered accommodation with the role. Ms Wong maintained the post related to another business she was involved with, but the Authority found the message underneath the post undermined that claim.
A personal grievance was raised on Ms Alpar's behalf on 21 August 2024, which the Authority found to be within the 90-day statutory period.
Bookieland initially argued Ms Alpar had been employed on a fixed-term basis, then conceded the agreements were unsigned and unenforceable and that Ms Alpar must be treated as a permanent employee. It then argued employment had ended by mutual agreement before she left for overseas.
The Authority rejected that position.
The case also involved a remuneration dispute. Ms Alpar alleged she was offered a seven per cent profit share in exchange for a five-year commitment in November 2022, though the arrangement was never formalised. Bookieland disputed the profit share but both sides agreed that a portion of wages was paid in cash each week. The ERA accepted Ms Alpar's evidence that this amounted to $350. That cash component had been excluded from her holiday pay calculations, and the Authority ordered that annual holiday arrears be paid.
The Authority awarded $12,000 for humiliation, loss of dignity and injury to feelings, accepting that Ms Alpar's health was impacted following the dismissal. She returned to New Zealand early from overseas due to financial concerns and sought medical and counselling support. It awarded $14,000, equivalent to two months' lost wages, noting that Ms Alpar had incorporated a company in October 2024 and opened her own café, MPR Eatery, by December 2024. The Authority found no contribution by Ms Alpar to the situation.
The case flags several practical considerations. Fixed-term employment agreements must meet the requirements of section 66 of the Employment Relations Act 2000, including being agreed to and signed by both parties, to be enforceable. Informal conversations about a business sale, however candid, do not amount to a mutual termination of employment. And any cash component of regular wages must be factored into annual leave calculations.
