A personal grievance claim by a prospective truck driver against Dynes Transport Tapanui Ltd has been dismissed by the Employment Relations Authority (ERA).
In August 2023, Dynes offered Shaun Cavanagh a conditional position as a truck driver. The conditions included consenting to and passing a drug test, signing and returning the employment agreement, and completing an ACC pre-employment claims history check.
Cavanagh, however, became unwell before starting the role and failed to meet the outlined conditions.
The ERA heard that while Cavanagh picked up the proposed employment agreement and shared it with a lending institution to support a loan application, he did not complete the required steps to confirm the offer. When Cavanagh was unable to start on the agreed date due to illness, Dynes withdrew the offer on October 2, 2023, citing the unmet conditions.
The determination, released on December 20, found that Cavanagh was never an employee of Dynes and therefore could not pursue a personal grievance claim.
Cavanagh argued that the employment agreement, which stated a start date of September 18, 2023, indicated he had been formally employed. He also highlighted language in the offer letter that suggested drug and alcohol testing “may” be arranged.
However, ERA member Philip Cheyne found that the employment agreement had not come into effect as the conditions outlined in the offer letter were not fulfilled.
“The sequence was expressly set out in the offer letter,” the determination noted. “Mr. Cavanagh was asked to consider the ‘conditional offer’, then sign and return the letter so Dynes ‘may’ arrange the drug and alcohol testing. After completion of a negative test, Mr. Cavanagh was to sign and return the employment agreement. Mr. Cavanagh took none of these steps.”
The ERA applied principles from a 2023 Employment Court decision, Edwards v Laybuy Holdings Limited, which determined that conditional offers do not establish an employment relationship until conditions are met. As such, the Authority concluded that Cavanagh was not an employee or a person “intending to work” under the Employment Relations Act 2000.
“Dynes withdrew its offer before Mr. Cavanagh gained the status of a person intending to work,” the Authority ruled.
With the conditional offer withdrawn and no employment relationship established, the ERA dismissed Cavanagh’s claim of unjustified dismissal. Costs were reserved, with Dynes given 28 days to apply for costs, should it choose to do so.
