Employers must follow correct redundancy process…

An employee was made redundant several months before his workplace closed down. The employee was told to leave the workplace immediately, and did not serve his two-week notice period.

The Employment Relations Authority upheld the employee’s personal grievance claim for unjustified dismissal.

The ERA held that the employer acted as a fair and reasonable employer could in all of the circumstances by making the employee redundant as the company was in deep financial strife and could not afford to pay the employee.

However, the ERA noted that the employer carried out a flawed redundancy process by failing to adequately consult with the employee about his redundancy. The ERA noted that the employer failed to tell the employee why he was being dismissed and that he was the only employee being let go.

The ERA ordered the employer to pay the employee two weeks lost wages plus $4,000 in compensation for humiliation, loss of dignity, and injury to feelings. The employer was also fined $1,000 for not giving its employees written employment agreements.