The Employment Relations Authority has refused an employer’s request to pay the $12,500 damages awarded for unjustified dismissal by $500 monthly payments.  This would have taken over two years to pay off the award.

The company provided some bank statements, which showed income and outgoings, but no financial accounts to show its assets and liabilities.  It also failed to explain to the Employment Relations Authority what the payments shown in the bank statements were, as it was suggested that some of the payments, listed as payroll, were actually to the owners of the business.

The ERA explained that the onus was on the company to prove that it cannot pay the award all at once and that by failing to provide information and explain its financial affairs it had failed to do so.  Its application was therefore rejected.

Alan Knowsley
Employment Lawyer