Worker blasts company over work block claim
A firm owned by one of New Zealand’s wealthiest families has been accused of wanting to ‘‘stop hardworking local people from making a living’’ by a former employee.
Liam Claringbold worked at the Talley’s Group-owned Rutherford Hotel in Nelson as its executive chef until he resigned abruptly on November 7, according to an Employment Relations Authority determination.
The ERA declined to issue an urgent injunction, sought by the Talley’s-owned hotel company, preventing him from working for a rival.
Upon resigning, Claringbold left immediately and failed to work the eight-week notice period required in his contract.
Two days later, his manager wrote to him reminding him of his obligations under a restraint of trade clause.
The clause, deemed unenforceable in the ERA determination, set out conditions whereby Claringbold could not work for any direct competitor, specifically other hotels, cafes, restaurants or conference centres, in the Nelson/ Tasman area for eight weeks after his last day.
Claringbold responded to his manager telling him he and the Talley family could ‘‘stick [your] restraint of trade as far up [your] a*** as you can get it’’.
He said he would distribute the letter to media and that the ‘‘good folk of Nelson and New Zealand will be interested in hearing how the multi millionaire family wants to stop hard working local people from making a living’’.
Within the month, Claringbold got a job as the executive sous chef at the Grand Mercure Nelson Monaco Hotel. His former manager at the Rutherford became aware of this, and legal representations were sent to both the hotel and to Claringbold.
A lawyer acting for the Monaco Hotel replied questioning whether the restraint was enforceable, and stated the hotel was happy to sign an undertaking that it would not seek or encourage Claringbold to disclose any confidential information.
This was not good enough for the Rutherford. In his affidavit to the ERA, general manager Bevan McGillicuddy referred to the ability to cause harm to the hotel through misuse of confidential information.
For his part, while Claringbold started at the Monaco on November 21, he worked there for six days by December 15 after agreeing he should stand down because of the dispute.
In his determination, authority member David Appleton said the restraint clause was not enforceable, ‘‘as it goes further than necessary to protect the confidential information of [Rutherford Hotel Holdings]’’.