The Employment Relations Authority has dismissed a claim
for unjustified dismissal following the sacking of the CEO of one of New
Zealand’s large insurance companies as a result of actions following the
earthquakes in Canterbury and Wellington.
The employer decided that the CEO had been guilty of
serious misconduct for breaching its rules around what properties it would
insure in Wellington. In particular this
related to the quality and resilience of the buildings. The CEO had failed to get a new portfolio of
buildings signed off by two of the managers as required by the internal policy
when more than a percentage of the buildings were located in Wellington.
The Employment Relations Authority found that the employer
had followed a fair process because they had raised the allegations with the
employee, given him an opportunity to respond and had advised him that he was
entitled to be represented. They had
also warned him of the possible consequences including dismissal should serious
misconduct be found. The employer had
fully investigated the allegations and considered the employee’s responses
before reaching its conclusion of serious misconduct. The ERA concluded that a reasonable employer
could have reached that decision and therefore the dismissal was justified.
Alan
Knowsley
Employment
Lawyer Wellington
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