The employee raised concerns with her employer that PAYE and student loan repayments from her wages were not being paid to IRD. The employer responded with a written warning to the employee and then terminated her employment for redundancy.

The Employment Relations Authority (ERA) found her warning and dismissal to be unjustified. The employer had no valid reason for giving the warning and also did not follow the correct procedure to make the employee redundant.

The employee was awarded compensation of $10,000 for her dismissal and $1980 reimbursement for lost wages.

The employer is also facing an investigation by the IRD for non payment of the taxes so could also face criminal sanctions and penalties.

 

Alan Knowsley

Employment Lawyer

Wellington