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Home / New Zealand

<i>Your Rights:</i> Given the boot because my employer couldn't afford me

By Lyndal Yaqub of DLA Phillips Fox
NZ Herald·
11 May, 2008 05:00 PM3 mins to read

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KEY POINTS:

Q: My employer has just fired me after three months. My employer said it couldn't afford to pay me the amount it was paying me. I then talked to my employer about putting me on lower pay only to find out that someone else has been hired. Is this right? Can my employer do this to me? I must have rights. I was given no warning whatsoever. A: In short, you have good grounds for taking a claim against your employer for unjustified dismissal. Even if your employer genuinely couldn't afford to pay you at your current pay rate, it cannot dismiss you for this reason alone.

A: Your employer had the opportunity to negotiate a lower pay rate with you, but failed to do so. You were under no obligation to accept a lower rate of pay but it seems from your question that you were prepared to.

All employers must follow a fair procedure before dismissing an employee. The kind of procedure will differ depending on the particular circumstances.

But, generally, a fair procedure will involve meeting the employee, discussing the reasons why the employer is considering dismissal, giving the employee the opportunity to explain their side of the story and hearing what the employee has to say with an unbiased and open mind before making any decision.

Usually, employers can dismiss an employee only after issuing them with formal warnings. Your employer may have considered your position was redundant so formal warnings were not required. But if someone else is now doing your job, it is unlikely that the redundancy was genuine - the position obviously still exists. Even if there were genuine reasons for a redundancy, there are special process requirements for redundancies.

These include consulting the employee about any proposal to restructure, giving the employee an opportunity to discuss the proposal and make any suggestions, and considering the suggestions before making a final decision. Alternatives to redundancy should also be explored.

Your employment has ended so you are entitled to any notice specified in your employment agreement (unless the dismissal was for serious misconduct) and all wages and unused holidays owing to you.

Your employer should have paid this to you on your final day of work. I suggest you check your employment agreement.

Your dismissal was substantively and procedurally unjustified. So, the chances of succeeding with a claim in the Employment Relations Authority are high.

You can contact your union (if you are a union member) or an employment lawyer for advice on how to take your claim to the authority.

Generally, you have 90 days from the time you were dismissed to bring your "personal grievance" to your employer's attention. So you should act promptly.

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