Failing to fulfil her obligations under a Return of Service Agreement with ABC Developmental Learning Centres (NZ) Ltd has cost Queenstown woman Rebecca O'Meara almost $12,000, the Employment Relations Authority found.
The determination, dated May 21, said Ms O'Meara began working for ABC in Queenstown as an unqualified teacher in June 2007, with a desire to become a qualified early childhoodteacher.
She was encouraged by then lower South Island area manager Davina Jones, who advised ABC would pay for the required training.
In December 2007, Ms O'Meara asked ABC to support her study towards a graduate diploma in early childhood education at Auckland University - at the time ABC's policy envisaged study through the New Zealand College of Early Childhood Education in Christchurch. Ms O'Meara noted it would take her two years to complete the course in Christchurch but only one year in Auckland.
"The letter closes with the statement: 'I feel by signing on for two further years with ABC once qualified, I will be extremely valuable for the centre here in Queenstown and for ABC in the long term'."
ABC agreed to the request and signed the Return of Service Agreement with Ms O'Meara on February 2, 2008, requiring her to work for the centre for two years following the completion of her course and recognising if she failed to complete the two years "I will be required to pay my employer all practicum costs and study fees paid".
The determination said Ms O'Meara went on to complete the course, but the timing of the completion was in dispute.
In the interim an issue arose over the non-payment of Ms O'Meara's wages while attending the last of her block study weeks.
After raising it with ABC, she was told staff were not entitled to payment for block study, even though she had previously been paid for the weeks.
After discussion, ABC conceded Ms Jones had agreed to making the payments, albeit without authority or head office knowledge.
That led to an amendment of the RoS Agreement, which was signed on September 30, 2008, adding "and block courses" to the reimbursements required should she fail to complete two years' work.
Ms O'Meara claimed the words were added after she signed and without her knowledge or agreement, which ABC disputed.
Completion of the course led to a promotion and a "significant pay rise", which took effect on April 20.
ABC considered the same date applied to the beginning of the service period required by the RoS Agreement, meaning Ms O'Meara would remain at ABC until at least April 19, 2011.
"She did not and in April [2010] advised that she intended to resign with effect April 30, 2010."
ABC advised her in a letter on April 20, 2010 she was required to reimburse ABC in full for the cost of practicums, fees and block weeks by April 30 - which totalled $18,638.25.
The letter also stated if the full amount was not received legal action would begin to secure the balance owed.
Ms O'Meara replied the RoS Agreement did not mention being required to repay wages, but "only such fees incurred by ABC for my practicum and study. Accordingly, I do not accept that any wages paid to me by ABC over this period are repayable".
In a later letter, dated April 29, 2010, Ms O'Meara offered to pay the amount she considered was owing - $6170.25.
The determination said she reduced that amount by wages outstanding and paid the residual amount, $4789.76.
The "residue" sought by ABC related to $9930 paid in wages to Ms O'Meara while she was absent on practicums and $2532 paid while she was attending block courses.
The sum had been amended and stood at $11,987.67, which Ms O'Meara was ordered to pay in full. The determination said it was not disputed Ms O'Meara was in breach of the agreement, but the dispute arose over the amount of money owed.
It found Ms O'Meara should reimburse ABC in full the gross wages received while she was on practicums and block courses; reimburse ABC tuition fees; and ABC was within its rights to deduct $344 from her final pay.
Costs were reserved.
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