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Poor process costs employer a total of $20,000…

An employer who failed to consult the employee during a redundancy process has had an order made against it for $10,000 compensation by the Employment Relations Authority.

The ERA held that the redundancy was genuine, that consultation would not have resulted in the employee retaining their job, and that there were no lost wages payable as a notice period had already been paid. 

However, the failure to consult seriously impacted on the employee’s health and justified an award of $10,000 for hurt and humiliation.  To make matters worse the ERA also held that the employer had to pay a further $10,000 compensation for leaking the decision to dismiss.

If you are unsure how to handle a redundancy process call Alan Knowsley for a free initial chat or download our free guide to the redundancy process.