Unfair dismissal process costs employer over $28,000…

The Employment Relations Authority has ordered an employer to pay over $28,000 after upholding an employee’s personal grievance claim of unjustifiable dismissal by way of redundancy. 

The employee worked 45 hours per week for the employer. In October 2022 the employee and one other worker were invited to attend a meeting with the employer. The employees were informed that the company “was on the verge of bankruptcy”.

The following week the employee was advised his position was being made redundant. His work hours were decreased to 30 hours per week without consultation, and he was paid that amount during his notice period. The employee was told he did not have to come back to the workplace again.

The employee raised a personal grievance claim with the Authority. 

The Authority had to consider whether the employer had acted as a fair and reasonable employer could have in all the circumstances. 

The Authority first considered that the employer had unilaterally decreased the employee’s hours from 45 hours to 30 hours per week, despite his employment agreement providing for 45 hours of work per week. 

The Authority also considered that the employee had been provided no reasons for his position being chosen for redundancy. In fact, when the employee asked, the employer sent him to work his notice period out from home. 

The employer further failed to consider or offer any alternative positions to the employee. No selection criteria were provided to the employee, there was very limited consultation, and no information was provided relating to the employer being “on the verge of bankruptcy”. 

The Authority concluded that these failures amounted to the dismissal being procedurally and substantively unfair, and was not how a fair and reasonable employer could have acted. The employee was therefore unjustifiably dismissed. 

The employer was ordered to pay $3,400 in unpaid wages, $1,020 for the unpaid notice period, $1,430 in lost wages and $20,000 for humiliation, loss of dignity and injury to feelings. The Authority further ordered the employer to contribute $2,250 to costs. 

This case is a clear example of an employer failing to act fairly and reasonably. If you believe you have been treated unfairly in your employment, it pays to seek advice from a professional with experience in the area. 

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.