Wednesday, 8 March 2017

Employee unjustifiably dismissed after employer fails to pay his wages…


In a recent case, an employee was paid for his work undertaken in two cash payments. These payments did not fully recompense the employee for the number of hours he had worked. The employer promised he would pay the amounts outstanding but no further payments were ever made.

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

The ERA held that a reasonable person would have taken the employer’s refusal to pay the employee’s wages as a dismissal.

The ERA found that the employer’s dismissal process was defective. The employer failed to raise any concerns he had with the employee and failed to undertake any investigation. The employer also gave the employee no opportunity to respond to any concerns before dismissing him.

The ERA held that the immediate and abrupt dismissal resulted in unfairness to the employee.

The ERA ordered the employer to pay the employee over $7,500 in wage arrears for the 377 hours of work that the employee had received no pay for, plus $5,000 in compensation for humiliation, loss of dignity, and injury to feelings.

Alan Knowsley
Employment Lawyer Wellington

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