13 September 2017

Employment: Brown v. NZ Basing

Employees based in New Zealand but having an itinerant life around the world still benefit from local age discrimination rules despite the “proper law” of their employment contract not being New Zealand law, the Supreme Court ruled in an appeal by two Cathay Pacific pilots.
Airbus pilots David Brown and Glen Sycamore challenged Cathay’s 2009 change to conditions of service requiring retirement at age 55 or continued service to age 65 at reduced pay.  The Supreme Court was told some 33 NZ-based Cathay pilots are affected.  Cathay said their employment contracts specified Hong Kong law as the “proper law” governing interpretation and application.  Hong Kong law does not prohibit age discrimination.
The Supreme Court ruled sections of the Employment Relations Act apply to all employees working out of New Zealand.  This gives protection for basic human rights: prohibiting discrimination on the grounds of sex, race and age.  These personal rights are protected by legislation regardless of any contractual provision stating that the law of another country governs the employment relationship.
The Supreme Court emphasised its ruling applies only to globe-trotting employees who are “based” in New Zealand.  Under their contract, the Cathay pilots are required to reside in New Zealand, Auckland is their designated “home base”, their tours of duty begin and end in Auckland and their salary is paid in New Zealand dollars.    
Brown v. NZ Basing – Supreme Court (13.09.17)

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