A recent decision by the Employment Relations Authority (ERA) highlights the importance of fair process in disciplinary matters and reinforces employers’ rights when dealing with serious misconduct. In this case, an employee’s claims of unjustified dismissal and unjustified disadvantage were dismissed after it was found that the employer followed all the proper steps in investigating and managing the issue.

🚨 The Case: Breach of Confidentiality and Employer Response

The employee, who had worked as a manager’s assistant for several years, sent multiple emails to a former manager discussing the employer’s internal affairs. These messages included sensitive information and cautioned the ex-manager to avoid discussing certain topics on the employer’s systems—implying they might be monitored. Additionally, the emails were critical of the employer’s recent staff appointments.

Upon discovering these communications, the employer immediately suspended the employee on pay and launched an investigation. The employee was later dismissed for serious misconduct. In response, the employee filed a personal grievance claim, alleging both unjustified dismissal and unjustified disadvantage due to the suspension.

⚖️ ERA Decision: Employer Acted Fairly and Lawfully

The ERA considered whether a fair and reasonable employer could have taken the same actions under the circumstances. The Authority found that the employer had:

• Properly investigated the matter and established that the employee disclosed confidential and sensitive information.
• Notified the employee of the allegations and potential outcomes, including possible suspension.
• Gave the employee opportunity to respond prior to disciplinary action.
• Maintained open and fair communication throughout the investigation.
• Carefully considered the employee’s responses before reaching a final decision to terminate her employment.

Regarding the suspension, the ERA found that it was carried out in line with the employee’s employment agreement, with appropriate reasoning and on full pay. Therefore, the claim of unjustified disadvantage also failed.

✅ Key Lessons for Employers

This case demonstrates that if employers:

• Follow a clear and transparent process;
• Adhere to the terms in the employment agreement;
• Provide proper notice and allow time for employee responses;
• And base their decisions on reasonable and documented concerns—

They can defend against unjustified dismissal claims successfully.

👩‍⚖️ Legal Support for Employers in Masterton & Wellington

At Core Legal, we specialise in employment law and can help guide you through any issues involving:

• Employee misconduct investigations
• Drafting and enforcing employment agreements
• Navigating the ERA process
• Handling personal grievances

Our fixed-price Initial Consultations make it easy for businesses to access professional legal support without uncertainty around costs.

If you are an employer in Masterton, Wellington, or the wider Wairarapa region, and want to ensure you’re acting within the law, get in touch with Core Legal today.