Unjustified dismissals lead to $64,000 compensation...

The Employment Relations Authority (ERA) has upheld two personal grievances claims for unjustified dismissal and ordered the employer to pay compensation and a penalty.

One employee was alleged to have sworn at the employer three times.  The other employee was also alleged to have sworn at the employer but many months previously. 

The ERA found that it was unreasonable for the employer to wait many months before raising an allegation of swearing by the second employee.  The ERA concluded that the allegation was only raised as the employer wished to get both employees to leave.  Both had previously indicated they were looking for other work but had not resigned.  Wanting certainty about staffing does not justify raising an old matter which was not dealt with at the time it occurred.  The allegation was made for an improper ulterior motive.  

In relation to the other employee, the ERA also found that the employer raising the allegations of swearing was done for an ulterior motive of getting rid of the employee so an alternative employee could be hired.  Such swearing had occurred previously from both the employee and employer and had not been raised as an issue.

The ERA found that the employer conducting the disciplinary process was in a conflict situation and he could not reach fair conclusions on the allegations.  He therefore did not have an open mind.

The ERA found that the decision to dismiss was disproportionate to the alleged behaviour and grossly excessive.

The employer was ordered to pay each employee $20,000 as compensation for hurt and humiliation plus lost wages to each of $12,000.  A penalty of $4,000 was also ordered for the employer’s breach of good faith.

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