Employee awarded $20,000 compensation for unjustified disadvantage and dismissal

An employee who resigned from their job and moved to another city for new employment was dismissed shortly after starting the role. As a result, he moved back to his original place to try to find another job. 

The Employment Relation Authority awarded the employee $20,000 in compensation for the unjustified disadvantage and dismissal caused by the employer.

Employees can raise personal grievances under the law for issues such as unjustified dismissal and unjustified disadvantage. If successful, available remedies may include:

• reinstatement or replacement of the former position;
• reimbursement of lost wages due to the grievance; 
• compensation for humiliation, loss of dignity, and injury to the feelings of the employee; and
• compensation for loss of any benefit which the employee might reasonably have been expected to obtain if the grievance had not arisen.

Despite this, if an employee’s own actions contributed to the situation that led to the grievance the remedies awarded would be reduced depending on the circumstances.

In the present case, the employer argued that the employment was casual, meaning there was no expectation of continuing employment.

Furthermore, the employee had not signed a written employment agreement before starting the job. 

However, based on a draft agreement, the parties’ evidence, and their messages, the Authority found that the employment was for permanent full-time work. This was supported by the fact that the employer was aware that the employee was leaving full-time employment and moving to another city specifically to take up this opportunity.

The employee sought compensation for humiliation, loss of dignity, and injury to feelings caused by the unjustified dismissal. He provided evidence that the employer’s actions caused him stress, hurt and upset. 

The timing of the dismissal was also significant. The employee was dismissed one month after starting work. During most of that month the employer failed to pay any wages, and for a substantial period was overseas on holiday. 

The Authority found that the employee did not contribute to the personal grievance because the non-payment of wages, failure to provide work, and unjustified dismissal were all the employer’s unilateral actions. Consequently, the Authority awarded the employee $20,000 in compensation without any deductions.

To avoid situations such as the above, it is important to have a written employment agreement before you start work. You should carefully examine key terms including your job description, hours of work, and pay. A clear and complete agreement can help confirm your legal status as an employee and enable you to raise a personal grievance and seek compensation if necessary.

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.