This is one of the most difficult aspects of a disciplinary process, and is the part that is most closely scrutinised by the Authority or the Court. In order for any disciplinary action to be justifiable in terms of the Employment Relations Act 2000, the outcome needs to be considered consistent with “what a fair and reasonable employer could do in all the circumstances” – see the test of justification under s 103A.
Forecasts indicate that labour costs are expected to increase only slowly to 2.2 percent for the year ending June 2017.
The Employment Relations Authority (ERA) has ordered three Hawke’s Bay horticulture contractor businesses to pay a total of $22,500 in penalties for failure to provide employment records to the Labour Inspector.
We’re doing the hard work for you! Prior to commencing a disciplinary process with an employee, there are many steps the employer needs to take in order to initiate a thorough and fair disciplinary process. Getting the prep work wrong can be fatal to the process so we’ve put together a checklist for you to help get you started in the right direction.
A major factor in deciding whether to bring a personal grievance will be the potential costs faced. Even if an employee succeeds, costs awarded are unlikely to cover the actual costs incurred. Further, the employer will also incur significant costs in defending a personal grievance, even when a case is of little merit. This is where a “without prejudice save as to costs” offer (“Calderbank”) can be useful.