The Employment Relations Authority has ordered the interim
reinstatement of an Iwi Manager who was dismissed from her position after
refusing to sign a new employment agreement with reduced terms.
The manager had been on a fixed term contract, but when
that term ended it was rolled over and another fixed term was offered. When that fixed term ended it was again
rolled over and another fixed term entered into. At the end of that term the employee was
offered a full time permanent contract, but on reduced benefits. She advised the employer that she was
considering the matter and taking legal advice and during that time she was
dismissed on the basis that her fixed term had come to an end.
The ERA held that she had a good claim to be reinstated in
the interim, as despite the breakdown in her working relationship with the
current Chairman of the employer, another board member could take on that liaison
role pending the outcome of the full hearing.
Employers need to be aware that fixed term employment
agreements can become permanent if they are rolled over and if there is no
longer a genuine reason for the fixed term.
There must be a genuine reason on each occasion that a fixed term is
extended and the reason for that fixed term must be expressed in the employment
agreement.
Alan
Knowsley
Employment
Lawyer Wellington
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