Wife’s actions cost employer $10,000 compensation plus lost wages…

After a short period of employment an employee was made to feel so uncomfortable by the employer’s wife that she has resigned. The employee felt uncomfortable with the amount of cash being casually left around the office. She was also uncomfortable with the way the employer’s wife would take money from the till without keeping a record.

In fear of being held accountable for the possible discrepancies the employee raised the issue to the employer and a new cash accounting system was put in place. The employer and his wife frequently had arguments in the office, the employee felt so unhappy about this she brought it up in a staff meeting. The Employment Relations Authority held that such behaviour by the employer and his wife made for an uncomfortable and unsafe work environment.

The employee made several complaints of intimidation and bullying in the workplace in relation to the employer’s wife and no steps taken by the employer to rectify the issue. After feeling unwell the employee was put on sick leave by her doctor due to stress in the workplace.

The ERA awarded the employee $10,000 for compensation over the hurt and humiliation she was caused. This was made worse by the distress experienced by the employee which contributed her to being unwell.

The ERA also found that the employee was constructively dismissed. The amount in which the employer has paid the employee in unpaid/lost wages has been settled on a confidential basis.

Alan Knowsley
Employment Lawyer Wellington