Compliance order issued: Employer to pay almost $30,000 for unjustified dismissal

The Employment Relations Authority (ERA) has issued a compliance order against Genuine NZ instructing it to pay up nearly $30,000 to an employee that it unjustifiably dismissed.

Genuine NZ was ordered early this year to pay its former employee, Tania Keane, $16,000 in compensation, $5,808 in lost wages, $8,000 as contribution for costs, and $71.56 for filing fee.

Keane reached out to the ERA saying Genuine NZ was unable to pay the sums ordered, which the organisation accepted before requesting for 30 days to comply.

ERA member Peter van Keulen granted this request in his compliance order dated last July 10.

"Imposition of a compliance order is a serious matter. Should Genuine NZ fail to comply with the order… Ms. Keane is entitled to pursue the breach in the Employment Court," van Keulen said in the ruling.

The ERA member warned that the Employment Court would have the authority to impose a fine of up to $40,000, order the sequestering of a property, or impose a prison sentence of up three months.

Employment dispute at Genuine

The ERA previously ruled that Keane was unjustifiably dismissed in 2022 after working for Genuine NZ for approximately three months.

Keane was hired to help set up and run a bed and breakfast for Genuine NZ, before later being offered a second marketing job for the company's new business venture.

Difficulties began after Genuine NZ co-director Le-Anne Harris started having issues with how Keane was "conducting herself."

Keane reportedly seemed to move faster in her thinking of the development of the business than Harris wanted, the ERA heard.

The situation reached the Harris' house when she invited over Keane to talk about the issues, but the matter escalated to the point of Keane leaving the house and Harris interpreting it as her resignation from the role.

The following Monday, Keane no longer had access to work applications and was called in for a meeting, where she received a letter terminating her employment with Genuine NZ.

Unjustified dismissal declared

But the ERA ruled that Keane walking out at the Harris home "cannot be considered to be a resignation."

"This was an argument that escalated but there was a cooling off period and Ms. Harris wanted to meet with her the following Monday to discuss what had happened and try to explain gently the rationale for why she wanted separation between Ms. Keane and some of the others involved in Petpow," the ERA said.

The authority also pointed out the lack of consultation with Keane over her conduct, which eventually led to her termination during the meeting.

"Because the issues with Ms. Keane's conduct were not raised with her, no consultation occurred before changes were made to how and where Ms. Keane worked in order to address those issues, and the decision to terminate was likely made before the meeting to discuss all these issues, Ms. Keane has established a personal grievance for unjustified dismissal."