A recent Employment Relations Authority (ERA) decision highlights the importance of correctly classifying workers and ensuring fair treatment in the workplace. The ERA ruled in favour of a claimant who was unjustifiably dismissed, determining that he was an employee rather than a volunteer.

At Core Legal Albany, Auckland, we specialize in employment law disputes and can help employees and employers navigate complex workplace issues.

Case Summary: Was the Claimant an Employee or a Volunteer?

The case arose when the claimant responded to an advertisement for part-time work. The employer and the claimant agreed via text and email that he would work two days per week.

After working for a month, the claimant requested to be paid the legal minimum wage, arguing that his compensation was below the required amount. The employer responded by telling the claimant not to return to work, even threatening to call the police if he did.

Following this, the claimant filed a personal grievance claim for unjustified dismissal with the ERA.

Key Factors Considered by the ERA

The ERA needed to determine whether the claimant was an employee or a volunteer, as the employer claimed he was working voluntarily.

The Authority found several key factors that confirmed the claimant was an employee:

✔ Compensation was discussed before the claimant started working.
✔ The claimant received partial payment for his work, which indicated an employment relationship rather than voluntary work.
✔ The employer had offered the claimant an employment contract, something unnecessary for a genuine volunteer role.

The ERA concluded that the claimant was an employee, and as such, the employer was required to follow employment law obligations regarding dismissal.

Unjustified Dismissal: Employer’s Failures

New Zealand employment law requires employers to act fairly and reasonably when dismissing an employee.

The ERA found that the dismissal was substantively and procedurally unjustified because:

🔹 The claimant was dismissed simply for requesting the minimum wage, which is unlawful.
🔹 The employer did not follow a fair dismissal process, such as discussing concerns with the claimant or seeking feedback before termination.

ERA Decision & Compensation Awarded

The ERA ruled in favour of the claimant, ordering the employer to pay:

💰 $76 in unpaid wages
💰 $700 in compensation for hurt, humiliation, and loss of dignity
💰 $2,250 in legal costs

Key Takeaways: Understanding Employment Rights

This case serves as a critical reminder for both employers and employees:

✅ Employers must correctly classify workers – A worker performing regular duties for compensation is likely an employee, not a volunteer.
✅ Employment law protects workers from unfair dismissal – Dismissing an employee without due process can result in financial penalties.
✅ Employees should know their rights – If you believe you have been underpaid or unfairly dismissed, you may have grounds for a personal grievance claim.

Get Expert Legal Advice on Employment Disputes

If you are facing workplace issues, whether as an employer or employee, seeking legal advice early can help you understand your rights and responsibilities.

At Core Legal Albany, Auckland, we offer fixed-price initial consultations to help you determine the best course of action.

📞 Contact us today to discuss your case with an experienced employment law expert.