A recent Employment Relations Authority (ERA) decision awarded an employee $20,000 in compensation after he suffered an unjustified disadvantage and dismissal just one month into a new job. This case serves as a crucial reminder of both employers’ legal obligations and employees’ rights—especially when relocation and permanent job offers are involved.

🚚 Relocation Followed by Dismissal

The employee resigned from secure, full-time employment and moved to another city to start a new role. However, shortly after commencing the job, he was dismissed without proper cause. The employer claimed the job was casual and not ongoing, despite clear evidence to the contrary.

Although the employee had not signed a formal employment agreement before starting, the ERA reviewed a draft agreement, communications, and testimony from both parties. It concluded that the position was intended to be permanent and full-time, and the employer was fully aware the employee had uprooted his life to accept the role.

⚖️ What the Law Says About Unjustified Dismissal

Under New Zealand employment law, an employee can raise a personal grievance for unjustified dismissal or disadvantage. If successful, remedies may include:

• Reinstatement to the position (where appropriate)
• Reimbursement of lost wages
• Compensation for humiliation, loss of dignity, and emotional harm
• Compensation for lost benefits that would have been earned if the grievance hadn’t occurred

💼 Employer Misconduct and Lack of Pay

The ERA found that throughout most of the employee’s short tenure, the employer failed to pay him and was even overseas for a substantial period, providing no work or communication. These actions were deemed unilateral and unjustified.

As the employee had no contributory fault, the ERA ordered the employer to pay $20,000 in compensation, with no reductions.

📝 Why a Written Employment Agreement Matters

This case underscores the importance of having a written employment agreement in place before starting any new role. Key terms such as:

• Job title and description
• Hours of work
• Remuneration
• Employment type (casual, fixed-term, or permanent)

…should all be clearly stated. This protects your legal status and strengthens any future personal grievance claims, should things go wrong.

👨‍⚖️ Legal Advice for Employees and Employers in Masterton & Wellington

At Core Legal, we help both employees and employers across Masterton, Wellington, and the Wairarapa region navigate complex employment law issues. Whether you’re facing dismissal, managing staff, or preparing employment agreements, our team can help.

We offer fixed-price Initial Consultations to make legal advice accessible and transparent.

Need employment law support? Contact Core Legal today.