Employee awarded $14,000 compensation after being made redundant…

An employee was made redundant and given three weeks’ notice by his employer under the guise that his role within the company was no longer economical.

The Employment Relations Authority upheld the employee’s personal grievance claim for unjustified dismissal.

The ERA found that the employee had not been adequately consulted about the redundancy, and that the redundancy was not genuine. The ERA held that the employer had ulterior motives for getting rid of the employee, namely his poor performance.

The ERA awarded the employee $15,000 compensation for hurt and humiliation. The employee had been working for the employer for over 20 years and was deeply affected by his dismissal. The employee noted that his employer was absent on his last day of work and did not offer a reference, or organise a farewell function.

Compensation was reduced by $1,000 because the employee breached his good faith obligations by applying for new employment while at work.

Alan Knowsley

Employment Lawyer Wellington