An
employee has been made redundant after being told by her employer that the
business could no longer afford to keep her employed. The employee asked her
employer to consider allowing her to work reduced hours or to work out her
notice period but these options were both declined.
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 when he decided to dismiss the employee on
the grounds of redundancy.
The
ERA found that the employee was not consulted about the prospect of her
dismissal or given adequate notice and time to think about it. The employee was
also not provided with the relevant information about the situation the
employer faced so that she could comment on it and the proposal to dismiss her.
The
ERA found that the employer had already made their decision to terminate the
employee and did not genuinely consider the options she proposed which would
allow her to stay employed.
The
ERA also found that there was no detailed evidence about the financial reasons
for her dismissal or why alternatives to her dismissal could not have been
properly explored.
The
ERA ordered the employer to pay the employee over $3,800 for lost wages and
over $2,000 in wage and holiday pay arrears plus $4,000 in compensation for
humiliation, loss of dignity and injury to feelings.
Alan Knowsley
Employment Lawyer
Wellington
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