2 CASES...Employers BEWARE
About the Author:
ALAN KNOWSLEY
Managing Partner at Rainey Collins
Alan Knowsley is the partner in charge of the litigation team and is focused on obtaining the best possible results for clients.
Times are tough for many. Stress levels are high. An employee may test your patience or let you down, but that is no excuse for failing to meet your obligations as an employer.
Two recent cases remind employers that there are consequences for treating employees unfairly.
CASE ONE
Unjustified dismissal after calling in sick…
The Employment Relations Authority has upheld a personal grievance claim for an unjustified dismissal after a worker was fired following calling in sick.
When the worker contacted his employer to say that he was unwell and could not come to work, he was told to “harden up or there would be no work for him”. The employer then sent a text to the employee telling him not to bother turning up to work. The employee took that as a dismissal and enquired about his final pay. The employer failed to pay any final pay and did not try to dissuade the employee from his belief that he had been dismissed.
The ERA held that this was an unjustified dismissal and awarded $3,300 for unpaid wages, over $4,000 for unpaid holiday pay and $12,000 compensation for the hurt and humiliation suffered by the employee for the unjustified dismissal.
CASE TWO
Company director personally liable for wage arrears…
The Employment Relations Authority has made an order that a company director personally pay over $18,000 in unpaid holiday pay, wage arrears, unpaid public holiday pay and unpaid alternate days for public holidays worked.
Although the employee was employed by a company, the director was held personally liable because the director knew of the company’s obligations to make the payments for wages and holiday pay and authorised the default by the company in making those payments.
This action was taken against the director after the Employment Relations Authority had made an order against the company itself, which had not been paid.
Directors should be aware that they cannot hide behind a corporate entity when it comes to the non-payment of wages and holiday pay due to the extensive powers to make directors personally liable for the failure of the company to make those payments.
Managing Partner
Rainey Collins Lawyers
0800 733 424
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