Many employers believe they have the right to instantly dismiss an employee for serious misconduct. However, New Zealand employment law requires a fair process before dismissal, even in cases of apparent wrongdoing. A recent case involving Womersley Group Limited and their employee, Mr. Meeking, highlights the pitfalls of neglecting proper procedure.

The Case of Womersley Group Limited

Mr. Meeking, an engineer, was subjected to a random drug test that returned a non-negative result for THC. Despite having a drug and alcohol policy that allowed for dismissal in such cases, Womersley Group Limited summarily dismissed Mr. Meeking on the spot. This seemingly straightforward action led to a legal challenge that Womersley ultimately lost.

The Employment Relations Authority found that Womersley failed to follow a fair process. They did not investigate the matter, raise their concerns with Mr. Meeking, or allow him an opportunity to respond. This lack of procedural fairness rendered the dismissal unjustified, despite the company's drug policy and the safety-sensitive nature of their work environment.

Key Takeaways for Employers

This case underscores the crucial point that employers cannot simply dismiss an employee without following a fair and reasonable process. Here's a summary of the steps employers should take:

1. Investigate: Thoroughly investigate any alleged misconduct. This includes gathering evidence, interviewing witnesses, and giving the employee a chance to explain their side of the story.
2. Raise Concerns: Clearly communicate the concerns to the employee in a formal setting.
3. Allow for a Response: Provide the employee with a reasonable opportunity to respond to the allegations. This may include providing written explanations or attending a disciplinary meeting.
4. Consider the Response: Genuinely consider any explanation or mitigating circumstances offered by the employee.
5. Follow Your Policies: Adhere to your own company policies and procedures regarding disciplinary action and dismissal.
6. Consider Alternatives: If appropriate, consider alternatives to dismissal, such as warnings, training, or redeployment.

Consequences of Unjustified Dismissal

Unjustified dismissal can have serious consequences for employers, including:

• Compensation: Employers may be ordered to pay compensation to the employee for lost wages, humiliation, and distress.
• Reinstatement: In some cases, the Authority may order the employer to reinstate the employee to their former position.
• Penalties: Employers may face penalties for breaching employment laws, such as failing to provide a written employment agreement or breaching the duty of good faith.
• Reputational Damage: Unjustified dismissal can damage an employer's reputation and make it difficult to attract and retain good staff.

Conclusion

The Womersley case serves as a stark reminder that even in seemingly clear-cut cases, employers must prioritise procedural fairness. By following a fair and transparent process, employers can protect themselves from legal challenges and ensure that any dismissal is justified and lawful.