A recent decision by the Employment Relations Authority (ERA) highlights how procedural missteps during a dismissal process can have costly consequences for employers. In this case, an employee was awarded over $27,000 in compensation and lost wages after being unjustifiably dismissed for displaying a sign near his desk that read: “I still DON’T trust my CEO.”

At Core Legal, with offices in Masterton and Wellington, we regularly assist both employees and employers in navigating employment disputes. This case offers valuable insights into what constitutes a fair and lawful disciplinary process under New Zealand employment law.

⚖️ Summary of the Case: A Dismissal Gone Wrong

The employer initiated disciplinary action against the employee upon discovering the sign in his workspace. Two disciplinary meetings were conducted on consecutive working days, after which the employee was summarily dismissed for serious misconduct.

The employee filed a personal grievance claim with the ERA, arguing that the dismissal was unjustified. The Authority agreed, citing multiple flaws in the employer’s process.

🧐 Key Issues Considered by the Employment Relations Authority

1. Was the Dismissal Influenced by an Ongoing Disciplinary Process?

   • An earlier, unrelated disciplinary matter had been ongoing for eight months.
   • The ERA found no direct connection between the previous issue and the dismissal, ruling out bias from that process.

2. Did the Employer Act Fairly and Reasonably?

   • The ERA assessed whether the employer followed fair procedures, including adequate investigation and giving the employee a chance to respond.

3. Deficiencies in the Dismissal Process:

   • Insufficient Preparation Time: Meetings were held back-to-back, giving the employee no reasonable time to prepare for the second meeting.
   • No Opportunity to Respond to Dismissal: The employee was never asked to comment on the potential outcome of summary dismissal before it occurred.
   • Conflict of Interest: The employee had raised concerns about the employer’s decision-making. The same individuals being criticized were involved in the disciplinary process, which the ERA deemed a conflict of interest.

💰 The Outcome

The Authority found that the employer failed to act as a fair and reasonable employer in all the circumstances. As a result, the employee was unjustifiably dismissed. The employer was ordered to pay:

• $6,800 in compensation for hurt, humiliation, and loss of dignity
• $20,380 in lost wages

📌 What Employers Need to Know

This case is a crucial reminder that even when an employee’s actions appear to breach workplace policies, a flawed process can render a dismissal unlawful. Employers must:

• Conduct thorough, unbiased investigations
• Provide sufficient notice and preparation time
• Allow employees a chance to respond to allegations and potential outcomes
• Avoid conflicts of interest in decision-making

📞 Need Employment Law Advice?

Whether you’re an employer dealing with a potential disciplinary issue, or an employee who feels unfairly treated, Core Legal is here to help. We offer cost-effective fixed-price initial consultations in both Masterton and Wellington, tailored to help you quickly understand your legal options.

Contact Core Legal today for trusted advice on all employment law matters.