Salesman sacked for revealing pay wins $30k compo

A Christchurch salesman has been awarded nearly $30,000 for unjustified dismissal after he was sacked for sharing details of his salary with a co-worker.

The Employment Relations Authority (ERA) heard that James Luhrs was hired in June

2017 as a salesman for Whitehouse Builders, along with two other sales staff.

During salary negotiations, founder Robert Whitehouse agreed to pay Luhrs a base salary of $50,000 with commission,

$10,000 more than he was paying the other sales staff. He asked Luhrs to not tell the others he was being paid more.

Within a month, Luhrs’ salary was suddenly reduced to $40,000 and he was told he would now work part-time. Whitehouse blamed this on unsatisfactory performance.

In October that year Luhrs and a colleague were having a drink after work, and Luhrs reportedly asked the co-worker if it was legal for Whitehouse to have reduced his base salary from $50,000 to $40,000.

The following day the coworker confronted Whitehouse about the discrepancy in salaries and afterwards resigned.

Whitehouse then confronted Luhrs, which resulted in his dismissal, with Luhrs asked to leave the property.

Whitehouse claimed he had not dismissed Luhrs, but had told him to go so that there was some space for them both to cool off.

However, the ERA ruled Luhrs had been dismissed, unjustifiably. He was awarded $28,630, after a 30 per cent discount was applied due to his breach of good faith by revealing his salary.