Wednesday, 2 September 2015

Ineffective trial period costs employer $10,840…



An employee working as a barista was dismissed over the telephone after calling in sick. The employer argued that the dismissal was justified as it was in accordance with the statutory 90-day trial period set out in her employment agreement.



The Employment Relations Authority upheld the employee’s personal grievance claim for unjustified dismissal. The employee commenced her employment approximately a week and a half before receiving and signing her contract. The ERA held that she was already an existing employee, and therefore the trial period did not apply. 



The ERA found that the employer failed to act as a fair and reasonable employer could in the circumstances, by failing to advise the employee that her employment was in jeopardy due to her slack timekeeping and attendance. Thus the employee was never given the opportunity to explain her conduct.



The ERA awarded $8,840 in lost wages, and $1,500 compensation for humiliation, loss of dignity and injury to feelings. The ERA also ordered the employer to pay a penalty of $500 to the employee for the non-provision of accurate payroll records.



It is crucial that employers provide prospective employees with individual employment agreements before they start work, or they risk paying reparation!




Alan Knowsley
Employment Lawyer Wellington

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