Woman who claims unjustified dismissal caused her to suffer a stroke awarded $13k by ERA

A premium car rental company has been ordered to pay almost $14,000 after unjustifiably dismissing one of its employees. Photo / NZME

A woman who says she suffered a stroke after being unjustifiably dismissed during the first nationwide lockdown has challenged her former employer - and won.

Zelda Gow, a former employee of Premium Mobility Services Limited (PMSL), was granted $13,500 in compensation by the Employment Relations Authority this week, after lodging a claim against her former employer in late 2020.

Owned by Giltrap Group, one of the country's largest car dealerships, PMSL makes up part of the rental portion of the business, although it predominantly operates at arms-length from the main business.

According to the authority's decision, Gow was first employed by PMSL in November 2016. Originally employed as a senior customer service agent, Gow was eventually promoted to branch manager, a role she held up until her dismissal.

On March 23, 2020, as the country entered the first nationwide level 4 lockdown, Gow's boss Bryn McGoldrick held a staff meeting via video conference.

At that meeting, McGoldrick proposed and sought consensus from employees around reducing everyone's wage by 20 per cent. Believing he had the consensus of the group, McGoldrick proceeded with the wage cuts.

A month later on April 24, McGoldrick sent a company-wide email to employees of PMSL warning of possible redundancies on the horizon, saying the firm's trade would soon be "a shadow of the business we were doing before lockdown".

Six days later, Gow received a call from McGoldrick informing her she was being made redundant.

Gow initially pleaded with the company to keep her job, telling McGoldrick she'd be comfortable to be employed in a less senior role if it meant she could stay with the company.

But McGoldrick said the company's financial position meant there was no role for her, and the redundancy was made official on June 4, when Gow was paid out four weeks' notice and provided with a certificate of proof of employment.

Gow subsequently laid two claims with the Employment Relations Authority - an unjustified disadvantage claim relating to the docked pay, as well as an unjustified dismissal claim.

According to the ERA's findings, the docking of Gow's pay during the lockdown period was unlawful. The authority said that any deduction of wages must only be done with the written consent of the employee.

The decision stated that McGoldrick at the time believed he had Gow's "tacit" agreement to the wage cuts.

However, accepting the complaint, PMSL has subsequently repaid the outstanding sum voluntarily, prior to the authority releasing its judgment.

Gow's claim she was unjustifiably dismissed was also upheld by the authority, on the basis that there was very little to no communication with Gow about the possibility of her being made redundant.

The authority said that while there was a genuine business reason for a restructure, the company did not meet its obligations under the Employment Relations Act to adequately consult with its staff.

The decision stated that Gow was not given access to information surrounding the continuation of her employment, nor the criteria to determine which staff were to be made redundant.

Gow claimed that as an employee of the business for close to four years, she believed affected staff would be let go on a last-on, first-off basis.

"The statutory obligations of good faith require employers to provide affected employees with access to information relevant to the continuation of the employee's employment and an opportunity to comment on the information before the decision is made," the decision stated.

"It would not have been possible for Ms Gow to know, until it was too late, that her position in the company was at risk."

In determining financial redress for the unjustified dismissal, Gow submitted to the authority that her period of unemployment led her to struggle with a number of health problems, including what she described as a "minor stroke".

Gow said she had worked without a period of unemployment for 30 years and that the dismissal in the midst of the lockdown caused significant stress.

The authority stated that Gow's submission was "persuasive" and determined that the dismissal led to a "significant loss of dignity and injury to feelings".

In considering the circumstances, the authority ordered the company to pay Gow $13,500 in compensation, and an additional $33.94 for interest on the 20 per cent worth of unpaid wages.

The authority also ordered the company to pay $4500 towards Gow's legal costs.

Responding to the decision, a spokesman for Giltrap Group said that Covid-19 continues to have a negative impact on the company's business, but supporting staff was one of the company's key priorities.

"The Employment Relations Authority acknowledges that border closures and travel restrictions meant 'there was a genuine business reason for Premium Mobility Services Limited to restructure its business given the financial circumstances at the time'."

"PMSL accepts the ERA ruling of unjustified dismissal concerning Ms Gow, and we will comply with the decision."