The Employment Relations Authority has upheld a claim for
unjustified dismissal after an employee was dismissed under a 90 day trial
period.
The 90 day period was due to expire just before Christmas
and the employer intended to dismiss the employee at that time. However, the employee requested an extension
to the trial period to give him a further chance to improve. The employer decided as it was just prior to
Christmas that it would be unfair on the employee to dismiss him then. It therefore agreed to a one month
extension. The employee was dismissed at
the end of the extended trial period.
The ERA held that there is no power to extend a 90 day
trial period beyond 90 days even at the employee’s request. Therefore the dismissal was not valid under
the 90 day trial period provision and was not justified.
The employee was awarded $6,600 lost wages, $8,000
compensation plus unpaid holiday pay ($800) and legal costs ($2,300). This made a very expensive $17,500 lesson for
the employer for its Christmas generosity.
Alan
Knowsley
Employment
Lawyer Wellington
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