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In brief from Rainey Collins Lawyers

19 July 2023

In this issue

Employee claim for unjustified dismissal fails but still gets compensation…

Employer ordered to pay $44,000 after failing to pay employee...

Employee claim for unjustified dismissal fails but still gets compensation…

The Employment Relations Authority has dismissed an employee’s personal grievance claim for unjustified dismissal following a disciplinary investigation.  The ERA, however, found that the employee was unjustifiably disadvantaged by being suspended.

The employee was instructed to wear the company uniform but refused to do so, claiming she was allergic to the material.  A compromise was agreed by which a cotton uniform would be provided instead.  The employee still failed to wear the uniform and when challenged was rude and abusive towards her supervisor and used threatening language including that she was recording the conversation.

The employer raised disciplinary allegations and sought the employee’s response to the allegations.  It found the allegations proved and that they were serious misconduct.  It gave her an opportunity to comment on her proposed dismissal and extensions of time to respond.

The ERA found that the allegations were properly raised and investigated and the decisions that they were serious misconduct and she should be dismissed were reasonable in the circumstances.  It rejected her unjustified dismissal claim.  However, the employee had been sent home on pay pending the investigation without her agreement and without any opportunity to comment on the suspension.  This was an unjustified disadvantage.

The ERA awarded $6,500 compensation for the failure to give her the opportunity to comment on her suspension.

The employer in this case got its processes and decisions 99% right, but tripped up on one small requirement. No doubt it is very galling to have to pay compensation to someone you correctly dismissed for serious misconduct.

Employer ordered to pay $44,000 after failing to pay employee...

The Employment Relations Authority has ordered an employer to pay $44,000 to an employee after repeatedly failing to pay the employee at times over the course of his employment.

The employee worked for the employer for a period of 18 months. At various points during this employment relationship the employee brought up the fact that he was not being paid with his employer, who scarcely replied to the employee and did not remedy the issue.

At one point, the employee was owed 21 weeks’ worth of wages. He emailed his employer asking if he should sell the company van to recover these wages, to which the employer did not respond.

The employer signalled to the employee that the business was winding up, and that she would pay him what he was owed. After the employee responded to this email, highlighting how much he was owed in wage arrears, the employer never responded.

The employee filed a claim in the Authority to recover the wages that he was owed.

The Authority decided that the employer owed the employee $29,000 in unpaid wages and holiday pay.

The employer was ordered to pay this amount in full, as well as $15,000 in compensation for the hurt and humiliation caused by the lack of payment by the employer.