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Telling employee “It’s not working out,” and he “had to go” costs employer $9K…

A recent Employment Relations Authority hearing into a personal grievance claim for unjustified dismissal has cost the employer over $9,000 in damages and costs.

The employee arrived at work one day to be told by the employer that “it wasn’t working out” and he “had to go”.  He asked about working out his notice period and was told to leave immediately.

The ERA confirmed that this total lack of a proper process meant the dismissal was unjustified.  The employer should have raised performance concerns with the employee and if standards were not reached, given graduated warnings before resorting to dismissal.  No previous issues of poor performance had been brought to the employee’s attention.

The employee was awarded $3,840 lost wages (out of work for 4 weeks), $4,000 compensation, and $1,200 legal costs.

If you need help getting the performance management process right give me a call on (04) 473 6850.