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Transfer of employee to new employer goes wrong…

The Employment Relations Authority has upheld personal grievance claims by an employee against both her former employer and her new employer after the sale of a business.

The employee was told by her old employer that her job was safe.  She was told by the new employer that she was not required.  The ERA held that her old employer had a duty to correctly advise her on whether or not she was required by the new employer.  The new employer unjustifiably dismissed the employee without a proper process.  Even though they did not want her to remain they did pay her for three days work after they took over the business and then dismissed her without any process.

The employers were ordered to each pay $6,000 to the employee for lost wages and compensation.  Transferring of employees on a business sale can be tricky.  If you need help please give me a call on (04) 473 6850.