Employee not treated fairly during factory shut down…

The Employment Relations Authority has found that the employee was constructively dismissed from her factory job because of a failure to treat the employee fairly. The employee resigned after the factory she was working at shut down while it transitioned from processing one product to another.

The ERA also found that once the factory reopened the employer had breached their employment agreement by prioritising senior staff and their return to work over the employee.

The ERA found that the employer had disadvantaged the employee in her employment by extending the shutdown period and not keeping the employee informed about when she could return to work. The Employer then told the employee her agreement was no longer in force. The ERA held that the employee had been unjustifiably and constructively dismissed because of the fundamental breaches of her employment agreement, and found that her resignation was foreseeable.

The ERA awarded three months lost wages, $3,200 in damages for the employer’s breach of contract and $7,000 compensation for humiliation, loss of dignity and injury to feelings.

Alan Knowsley
Employment Lawyer Wellington