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Poor redundancy process costs $15,000…
The Employment Relations Authority has found that a redundancy process resulted in an unjustified dismissal. The landscaping company had no work and the owner decided to close the business. However, he did not go through any process with his employees or follow the requirements in their Employment Agreements. As a result of the failure of following the proper process the employer breached his obligations of good faith and the dismissals were unjustified.
The employer was ordered to pay $15,000 compensation for hurt and humiliation for the lack of any proper process in the redundancy even though the redundancy itself was genuine.
Employment Lawyer
Wellington
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