Yet again an Employer trips up, and $62,000 is awarded to an alleged drunk and abusive employee…

In a recent Employment Relations Authority decision an employer was held to have got the process so wrong that the employee was entitled to lost wages and compensation of over $62,000.

The employer alleged that the employee was intoxicated at a work function, abused staff and customers, and failed to control other drunken customers.  The employee was suspended, and then dismissed after a disciplinary meeting.

Unfortunately for the employer they failed to get much right in the process they followed:

1)    They failed to tell the employee they were considering suspending him and did not give him a chance to comment first;

2)    There were no valid grounds to suspend pending the investigation;

3)    The employee was not told in advance of the allegations so had no time to prepare;

4)    The allegations were vague and lacked detail, and the employer itself did not even know what they actually were;

5)    When the employee asked for further details these were not provided;

6)    Information promised was not provided to the employee;

7)    Witnesses were not interviewed;

8)    Unverified allegations were relied on;

9)    There was no evidence to support the allegations;

10) He was not advised that he could be dismissed due to the allegations;

11) He did not have a proper opportunity to get a representative; and

12) The decision to dismiss was taken by people not present at this meeting, so they could not properly consider the employee’s explanations.

The ERA awarded the employee his full lost wages for the seven months he was unable to find work ($50.5k), plus bonuses ($22k), and $5k compensation for hurt and humiliation.  These awards were all reduced by 20% for the employee’s contribution to the situation though his behavior.

This was a very expensive lesson for the employer on how not to run a disciplinary process.  If you need help to get it right call me on (04) 473 6850.

Alan Knowsley