Tuesday, 9 April 2019

Poor dismissal process costs employer again…


The Employment Relations Authority has found that an employee was unjustifiably dismissed because the employer failed to follow a proper process in dealing with a disciplinary matter.

The employee had been paid a salary higher than other staff on the basis that he did not discuss his salary level with any other staff.  The employee then told one of the other staff of his salary level.  This caused the other staff member to challenge the employer about the discrepancy and to resign.

The employer then confronted the employee and dismissed him without any process.  The Employment Relations Authority awarded over $28,000 damages for the unjustified dismissal.  That was after reducing the damages by 30% due to the employee breaching good faith by revealing his salary.

As the employee had breached good faith the employer would have been entitled to dismiss him had a proper disciplinary process had been followed.  The allegation of breach of confidentiality by discussing his salary with another employee should have been put to the employee and his response sought before any decisions were made as to whether he was guilty of breaching his agreement.  If that had been done the employer would not have been liable for any damages for dismissing the employee as the dismissal would be justified and a fair process followed.

 

 

Alan Knowsley
Employment Lawyer Wellington

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