Poor redundancy process costs $21,000…

The Employment Relations Authority has upheld an unjustified dismissal claim following a restructure by the employer.

The ERA found that the process followed by the employer was defective, especially around the offering of alternative roles and the failure to understand the pressure placed on the employee, who had to take leave during the process, as a result of the stress she was suffering from.  The ERA decided that no fair and reasonable employer could have decided to have dismissed the employee in the circumstances at the time, without first meeting with her following her recovery from her illness.

The ERA also decided that the employer should have given the employee more time to think things through calmly, after the initial shock she suffered, because of the proposed redundancy, had had a chance to subside.  If that further time had been given, the employee would more than likely have taken one of the alternative roles offered.

The employee was awarded $15,000 compensation, plus $6,000 wages.

Alan Knowsley

Employment Lawyer
Wellington