Employee ordered to pay over $58,000 for breaches of employment agreement…

The Employment Relations Authority has penalised a worker found to be in breach of his employment agreement.  The employee had a gripe against his employer so began operating in competition (website design) and approaching his employer’s customers for contract work while still employed.

A total of 263 breaches were discovered.  The ERA ordered a penalty of $50,000 plus over $8,000 costs. The fundamental obligation not to act in competition with the employer does not have to be specified in the agreement to be enforced.

If your employee is acting in breach of their employment agreement then you can take action to stop them and recover damages before they cause irreparable damage to your business.

Alan Knowsley

Having a policy of no sexual harassment not enough…

In a case where the employee brought a personal grievance for constructive dismissal the Employment Relations Authority has held that the employer breached its duties to the employee despite have a policy against sexual harassment…

The ERA held that the employer had:

(i)            No material outlining what could amount to sexual harassment;

(ii)           No induction process that covered the sexual harassment policy;

(iii)          No other educational process regarding sexual harassment; and

(iv)          No regular reminders of the policy.

In this case the breach did not cause the employee’s resignation as she failed to alert the employer to the harassment prior to her resignation.  The employer had no opportunity to investigate and take steps to prevent any reoccurrence.

Having a policy is not enough.  It has to be clear, educative, brought to the employee’s attention and reinforced on a regular basis.

If you need help with working up a policy, or the process to reinforce it, please give me a call on (04) 473 6850.

 

Alan Knowsley

Employment ends upon death of employer...

The Employment Relations Authority has denied an unjustified dismissal claim from an employee following the death of his employer.

The Authority held that as the agreement was with the employer personally it came to an end on his death and so there was no dismissal of the employee.

 

Alan Knowsley

$211,000 back wages & penalties ordered…

The Employment Relations Authority has upheld claims brought by the Labour Inspectorate against an employer with three retail outlets.

Employees were not provided with employment agreements, were not paid holiday pay and were not paid the minimum wage.

Penalties of $60,000 were imposed for breaches of the minimum wage and holidays requirements.  A penalty of $55,000 was imposed for not providing employment agreements.  Wages and holiday pay of $96,000 were also awarded.

If you need help getting your employment obligations correct please give me a call on (04) 473 6850.

 

Alan Knowsley

Sexually harassed at work but no compensation…

A woman who has been found by the Employment Relations Authority to have been sexually harassed on multiple occasions has failed in her personal grievance claim for constructive dismissal.

The ERA accepted her claims of unwanted sexual comments from co-workers but did not make a finding against her employer because she had failed to alert her employer to the abuse until her resignation letter.  The employer, therefore, had no opportunity to put a stop to the behaviour and was not responsible for the other employees’ actions.

If you need help bringing concerns to your employer’s notice please call me on (04) 473 6850.

 

Alan Knowsley

90 day trial provision ineffective…

An employee has succeeded in her personal grievance claim for unjustified dismissal.   She had been working for just under three months when she was given a three month employment agreement with a 90 day trial period.  She signed the agreement and was fired the next day.

The Employment Relations Authority had no trouble finding that the three month fixed term contract was not lawful as no genuine reason was given for the fixed term.  In addition the 90 day trial provision was not lawful as the employee was already employed.

Lost wages of $6,656 and compensation of $6,000 was awarded.

If you need help getting your employment agreements right please give me a call on (04) 473 6850.

 

Alan Knowsley