This project was the first of three in the Law Commission’s review of aspects of damages.
The project arose from ongoing work on damages and the introduction into Parliament of the Employment Contracts Bill.
In this project, the Commission reported on employment contracts and the rule in Addis v Gramophone Co.
In the subsequent two projects, the Commission reported on the rules in Bain v Fothergill and Joyner v Weeks (see Aspects of damages 2) and recommended a comprehensive mandatory scheme for the award of interest on money claims in court proceedings (see Aspects of damages 3).
Aspects of Damages: Employment Contracts and the Rule in Addis v Gramophone Co (NZLC R18, 1991)
The Commission's Report, Aspects of Damages: Employment Contracts and the Rule in Addis v Gramophone Co (NZLC R18, 1991) arose from ongoing work on damages and the introduction into Parliament of the Employment Contracts Bill.
The rule in the Addis case denied damages for the harshness and oppression accompanying a dismissal from employment and any loss sustained from discredit thrown upon the employee. That limit is inconsistent with the general principles of the law of damages; the application of the rule is uncertain; its scope of application in New Zealand is narrowed in an anomalous way by legislative provision (also contained in the new Bill); and its continued force in New Zealand is unclear in the light of recent judicial decisions and criticism. This Report is followed by Report 19 : Aspects of damages : the Rules in Bain v Fothergill and Joyner v Weeks.
Our recommendations were implemented almost in entirety by the Employment Contracts Act 1991.
There was no requirement for the Government to present a formal response to Commission reports before April 2009.