Wednesday, 30 March 2016

Employer penalised after breaching good faith obligations…


An employee was working as a night chief when her employer raised issues with her performance. The employer offered the employee a new position as a raw cake maker which the employee accepted. Shortly afterwards, the employer made the employee redundant.

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

The ERA held that the employer failed to act as a fair and reasonable employer could in all of the circumstances by breaching his duty of good faith. The employer failed to provide the employee with relevant information about the employee’s ongoing employment, and did not provide the employee with an opportunity to comment on the information before making the employee redundant.

The ERA noted that the employer had also failed to explain why the employee and no other staff were being made redundant.

The ERA ordered the employer to pay the employee over $7,000 for lost wages, and over $320 for wage arrears plus $4,000 compensation for humiliation, loss of dignity and injury to feelings.

Alan Knowsley
Employment Lawyer Wellington

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