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Employment Relations Authority decision provides employers with two important reminders
Michael was told by his boss that he was a “square peg in a round hole”, that he did not “fit the mould”, and to collect his things and go. Michael had previously been given no indication his job was at risk, and no opportunity to have his say.
Michael’s employer was ordered to pay $8,000 compensation to him. As Michael did not have an employment agreement, his employer was also ordered to pay a $3,000 penalty for failing to provide an employment agreement.
This decision is an excellent reminder to employers that:
- Employers must follow a proper process when dismissing an employee.
- Employers must have written employment agreements for their employees.
As Michael’s employer no doubt learnt, if an employer fails to get either of these two points right they risk incurring unnecessary costs.
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