Arbitrary reduction in hours results in constructive dismissal…

An employee who had her hours cut without agreement has won her personal grievance claim for unjustified dismissal.  The employee left her employment after three incidents of reduced hours.

The Employment Relations Authority has upheld her claim and awarded $4,200 lost wages plus $1,500 compensation for hurt and humiliation.

Unless the employee agrees, you cannot reduce their hours.  If the employee does not agree, then, if there is insufficient work, you can begin a redundancy process.  An employer cannot use a redundancy process to deal with poor performance or discipline issues.

If you need help with employees who are not performing up to standard or in a restructuring give me a call on (04) 473 6850.

 

Alan Knowsley