A manager recently took a personal grievance for unjustified termination and was awarded over $40,000 lost wages, plus $8,000 compensation and other benefits.

His termination, at the end of a fixed term agreement, was held by the Employment Relations Authority to be an unjustified dismissal as it had not followed a proper redundancy process.

A redundancy process was needed despite the ending of a fixed term, because the reasons for fixed term were not in writing as required.

The manager had for several years been on a succession of fixed term agreements.  The last had expired, and a new one not put into place.  His employment therefore became permanent.

A verbal indication of a six month extension did not comply with the legal requirement of being in writing, and detailing the fixed term reasons in writing.

If you have employees on fixed terms you need to follow the proper legal steps before they commence work, and on any extension of the term.

If you need assistance with getting your agreements right give me a call on (04) 473 6850.