ERA weighs medical evidence in workplace dismissal dispute
The Employment Relations Authority (ERA) recently dealt with an interim reinstatement application from a worker who claimed she was unjustifiably dismissed when the Inland Revenue Department (IR) terminated her employment in September 2024.
The case centred on whether the employer's decision to end employment on grounds of frustration of contract was justified.
It also discussed whether interim reinstatement would be appropriate given the workplace circumstances.
The worker started at IR in March 2023 as a workplace support (level 1). According to the decision, issues arose early, with her team leader noting concerns about lateness, lost driver's licence, workplace attire, and instances of sleeping at work.
The employer attempted to address these through informal channels. A June 2023 meeting was specifically noted as "not formal nor with any disciplinary outcome" to discuss concerns including lateness, tiredness, sleeping at desk, and workplace attire.
Despite coaching efforts from the team leader, including implementing a basic training plan, these issues persisted throughout the employment relationship.
Documentation showed deteriorating workplace relationships. The ERA noted: "The problematic interactions [the worker] has had with the majority of her team (the team she would have to work with were she to be reinstated), makes the prospect of a successful return to work less likely."
One incident recorded in an email complaint described the worker calling a colleague a "narc" and saying "I bet you have no friends, you seem like the type to have no friends." This colleague reported the interaction as "extremely hostile."
The team leader reported significant stress from managing these situations, describing herself as a "human shield" for the worker because her team struggled to work with her.
Before termination, records showed the worker arrived late 77% of the time in the previous 11 months.
The worker's representative argued that sleep apnoea might explain many issues and requested time for medical assessment.
A clinical psychologist's report later confirmed complex post-traumatic stress disorder (cPTSD), which the ERA noted "presents with a number of symptoms that significantly impact her ability to concentrate and [manage] stress."
The ERA found "a serious question to be tried in relation to [the worker's] claim of unjustified dismissal," noting: "Frustration of contract is a rarely invoked doctrine, perhaps because it requires something exceptional not captured by contract."
However, regarding reinstatement, the ERA stated: "Concerns about the health and safety of other staff play a significant role in my consideration of the balance of convenience and in my view weigh heavily against interim reinstatement."
The ERA declined the interim reinstatement application. The next step, as outlined in the decision, was for the Authority Officer to schedule a case management call to timetable evidence and confirm an investigation meeting date in the new year.
