Your Resources

$15,000 damages for botched redundancy…

The Employment court has upheld a personal grievance claim for unjustified dismissal after a redundancy process.

The employer had used psychometric testing as part of the process of choosing which staff to make redundant.  The employer had used an outside agency to test the relevant staff, but was not permitted to know the questions asked and answers given because this was the intellectual property of the testing company.

The employer could not provide that information to staff affected on request and was therefore held to have been not acting in good faith.  The Court warned about relying on such systems in choosing who to make redundant.

The employer also did not comply with its own employment agreement provisions on how to decide on redundancies, and took into account irrelevant factors.  The Court ordered reinstatement and $15,000 damages.

If you need assistance with the redundancy process give me a call on (04) 473 6850.