Employer ordered to pay $7,500 after unjustified dismissal...

The Employment Relations Authority has ordered an employer to pay $7,500 after a finding of unjustified dismissal.

The employee signed an initial employment agreement that stipulated that he would be employed in a full time role by the employer. No set amount of hours was contained in the employment agreement, but the employee worked over 40 hours weekly for the employer.

During the course of his employment, the employee was invited to attend a disciplinary meeting by the employer to discuss the employee’s job performance, including the excessive use of his personal phone whilst working.

During this meeting, the employee was informed that the employer’s clients did not want to work with the employee anymore, and that he would have to find a new place to work.

After this meeting, the employer no longer provided the employee with work.

The employer directed the employee to a different employer, stating that he should meet with him and see if he could attain alternate employment.

The employee soon after informed the employer that he was resigning, as he had received another job offer from the alternative employer. The employee then resigned, and raised a personal grievance of unjustified constructive dismissal.

The Authority decided that whilst the employee did resign from his job, this resignation only occurred because of the employer’s actions.  The employer stated that he had no further work for the employee, and encouraged him to seek employment elsewhere. This was decided to be an unjustified constructive dismissal.

The employer was ordered to pay $6,000 to the employee as compensation for the hurt and humiliation caused by the dismissal, and $1,500 as compensation for unpaid wages and holiday pay.

If there is confusion around the required process when dismissing an employee, 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.

Alan Knowsley and Matthew Binnie

Litigation Team
Wellington