The Employment Relations Authority has upheld a personal grievance claim for unjustified dismissal after an employee was dismissed for redundancy.  No consultation was undertaken with the employee before she was advised that her position was being made redundant.

The suddenness of the termination of her employment after 15 years working for the employer resulted in an award of $10,000 compensation plus three months lost wages of $13,000.

The employer was ordered to pay $4,200 wage arrears and holiday pay and was penalised $4,500 for having no employment agreement and for failing to provide wage and time records when required.

If the employer had merely raised the possibility of a redundancy with the employee and given her an opportunity to comment on the proposed redundancy then the employer would have saved themselves the $23,000 awarded.

In addition employers must provide employment agreements for all employees and provide wage and time records.  A failure to do so will result in fines from the ERA.

Alan Knowsley
Employment Lawyer