Workplace Investigation NZ: Why Fair Process Matters for Employers

In the case involving Amanda Piacun and Cooper No 1 Limited, I'm pleased to share insights from a determination by the Employment Relations Authority in Auckland. This ruling resulted in a higher-than-usual compensation award for the applicant, highlighting the importance of employee rights in workplace disputes.

Case Overview

Amanda Piacun was employed by Cooper, previously known as Vehicle Logistics Limited, from approximately 2016 until her termination on June 15, 2023. Ms. Piacun's dismissal occurred under contentious circumstances, particularly as she had been on accident compensation (ACC) leave for nearly two years due to a serious non-workplace injury. The company claimed her employment ended because the purchaser of the business decided not to retain her, which Ms. Piacun contested as unjustified.

Key Claims

Ms. Piacun's claims included:

• Unjustified Dismissal: She argued that she was not given a chance to apply for a position with the business's new owner and was denied the four weeks' notice she believed she was entitled to.

• Annual Leave Entitlements: She sought reinstatement of annual leave that had been "topped up" during the COVID-19 lockdowns.

• Compensation: Ms. Piacun sought a total of $30,000 for various losses, including wages and notice period.

The Authority’s Findings

After a thorough workplace investigation and consideration of evidence, the Authority determined that:

1. Unjustified Dismissal: Ms. Piacun was indeed dismissed without notice, and the employer's actions did not align with the expectations of a fair and reasonable employer.

2. Breach of Contract: Cooper failed to comply with the employee protection provision in Ms. Piacun’s individual employment agreement (IEA), which was supposed to ensure negotiations regarding her potential employment with the purchaser.

3. Compensation Award: The Authority awarded Ms. Piacun $18,000 for the humiliation, loss of dignity, and emotional distress resulting from her unjustified dismissal. This award is notably higher than usual, reflecting the severity of the breach and its impact on Ms. Piacun’s well-being.

Importance of the Ruling: Workplace Investigation NZ - Understanding Employer Responsibilities

This determination underscores several vital points in employment relations:

• Employee Rights: The case illustrates the critical importance of adhering to contractual obligations and the need for transparent communication during significant business changes.

• Higher Compensation Awards: The decision to grant a substantial award emphasises that unjustified dismissals will not be tolerated and that employers must act fairly and reasonably.

• Accountability: The ruling serves as a reminder that employers can be held accountable for not following proper procedures, particularly when it comes to dismissing employees on medical grounds or during business transitions.

Conclusion

The outcome of this case is a significant step in affirming employee rights and ensuring that employers remain accountable for their actions. Ms. Piacun’s award of $18,000 is a clear statement that unjustified dismissals have serious consequences, and employees deserve protection and respect in the workplace.