Genuine NZ Ltd (GNZ) has been issued with a compliance order by the Employment Relations Authority (ERA), following non-payment to a former staff member after losing a case against them for unjustified dismissal. The ERA previously ordered GNZ to pay nearly $30,000.00 to a former employee, Tania Keane, which they failed to do. The ERA has told GNZ to pay up or face severe penalties, including further fines or even imprisonment for their continued non-compliance.
Keane was hired by GNZ co-director Le-Anne Harris in 2022 to assist in setting up and running a bed and breakfast and later took on a marketing role for GNZ’s new venture, Petpow. The work was either remote or at each other's premises at times. Problems between Harris and Keane quickly came to a head and after a few arguments, the final one involving Keane walking off from Harris' property. Subsequently Keane found she was unable to access work applications and was then asked to attend a meeting at the office on June 13, 2022. At the meeting Keane was handed a termination letter pre-dated 4 days earlier alleging failure to listen and fired on the spot.
The ERA determined her dismissal was predetermined and unjustified, awarding her three months’ lost wages amounting to $5,808.00, costs of $8,071.56, and $16,000.00 in compensation. The initial compensation amount was reduced from $20,000.00 due to Keane's behavior contributing to her dismissal.
Despite nearly three months passing since the decision, GNZ had not paid Keane the awarded figure. Consequently, Keane sought a compliance order under section 137(1)(b) of the Employment Relations Act 2000 to force the issue. Employment Relations Authority member Peter van Keulan’s investigation revealed GNZ acknowledged non-payment and did not contest the compliance order but requested 30 days to comply.
Van Keulan granted GNZ the 30-day period to fulfill the payment, emphasizing the seriousness of the compliance order. He went on to further warn that failure to comply could lead to severe repercussions, including Employment Court fines up to $40,000.00, property sequestration (potential bankruptcy), or imprisonment for up to three months.
Key Takeaways
- Employee behavior (contribution to the problem) does not mean the employer is allowed to act unlawfully, or otherwise not follow due process
- Walking off job should not be deemed a resignation
- Do not unilaterally cut off employee's access to work
- Do not terminate people at the same meeting you're supposed to be consulting with them
- Adhere to ERA determinations. If you wish to contest decisions, do it properly and formally via the appropriate legal procedure.