The Employment Relations Authority has upheld a personal grievance for unjustified dismissal after finding several failings in the employer’s process for dealing with a redundancy.

The employer advised the employee that her employment would terminate as the business had been sold to a new company and all employment agreements were ending.  This was not correct as no new company was buying the business.  The transaction was only a sale of shares in the existing business so the employer did not change.

The employer also failed to consult properly with the employee over what new position would be offered and unilaterally reduced her hours, pay and status.

The ERA awarded $2,200 lost wages plus $12,000 compensation for the employer’s breaches of good faith in the process.

Alan Knowsley
Employment Lawyer