Employers penalised over $12,000 after failing to follow proper termination process

An employee has been successful in the Employment Relations Authority after raising a personal grievance claim for unjustified dismissal.

The employee was dismissed from his employment at a meeting with his employers after he had a dispute with a co-worker.

The employee was told that things were not working out and that he should look for another job. The employers thought things had gone too far between the two men and wanted to employee someone new.

The ERA found that no formal mutual agreement was reached between the employee and the employers to end the employment relationship.

Accordingly, the employers needed to follow a proper and fair process when dismissing the employee. The ERA found that the employers could not rely on the employee’s poor performance as justification for the dismissal as they had not raised their concerns with the employee about his quality of work or informed him that any failure to improve may result in his termination.   

The ERA ordered the employer to pay the employee over $5,000 in lost wages plus $7,000 in compensation for humiliation, loss of dignity and injury to feelings.