How many warnings can NZ employers give before dismissal?

Dismissals should be seen as a last resort after undertaking a ‘fair and reasonable’ review process

How many warnings can NZ employers give before dismissal?

An employee who has committed serious misconduct may face immediate termination without any written warning from their employer.

“Serious misconduct is labelled ‘serious’ because it can have the effect of destroying or undermining the relationship of trust and confidence between an employee and employer. Without this trust and confidence an employment relationship can’t continue,” Employment New Zealand states.

But what about the grey areas – when an offence doesn’t necessarily merit a summary dismissal?

Apart from addressing serious misconduct, employers can dismiss a worker for repeated misconduct (minor violations of office rules), performance issues, redundancy, incompatibility or incapacity, or anytime during a new hire’s 90-day probationary period.

The employment agreement, however, should clearly outline the number of verbal and written warnings employees are to be given before management begins to take more serious action, such as suspension or termination.

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Dismissals should be seen as a last resort and only after undertaking a “fair and reasonable” review process, according to Employment New Zealand.

This process should give the worker the opportunity to respond to allegations, in cases of poor behaviour or performance, as well as ample time to rectify their conduct through training and the guidance of their managers.

A formal written warning issued on the first and second instance, for example, should include details of the incident, the reason for the warning, a summary of previous offences, and the date the warning/s were issued, along with excerpts of company policies and relevant clauses in the employee’s contract. This documentation is recommended by business.govt.nz, a website managed in partnership with New Zealand’s Ministry of Business, Innovation & Employment.

First and second written warnings work as documentary evidence, especially when the employee repeatedly violates the rules or continues to perform poorly.

A final written warning, on the other hand, should indicate the consequence of dismissal if yet another breach occurs.

In the case of redundancy, the employer must provide workers with a written notice stating the reasons for, and the date of, termination. Employment agreements should specify the length of the notice period, or the amount of time between the issuance of the notice and the workers’ last day of employment.

“If the employment agreement doesn’t have a notice period, then fair and reasonable notice must be given. This should take into account length of service, type of job, how long it might take to replace the employee and common practice in the workplace,” Employment New Zealand writes. A notice period of two to four weeks is seen as fair in most cases.