Unfair Dismissal Can Prove Costly

Last week my colleague, Sean Maskill, wrote about tackling underperforming farm workers and managing this process to achieve a good outcome. 

You can attempt to manage an underperformer as much as you like, but you have to draw a line in the sand somewhere.  Sometimes you can lead a horse to water, but you can’t make it drink.  So what happens when your horse won’t drink, or the proverbial milk bucket has been kicked?  Then it’s time for your employee to go.

Sometimes your employee will fall on their sword, and resign, or perhaps ask to negotiate an agreed ‘exit’ (‘negotiated exits’ should be agreed in writing and signed off by a mediator from the Ministry of Business Innovation and Employment as a fully enforceable and final settlement agreement).  On the other hand, the employee will often not just walk, and perhaps even push back by claiming they have been bullied and harassed by you.

Where your wayward employee shows no sign of leaving a proper process is needed.  If there has been continued lateness or a failure to turn up at all, fowl and abusive language, unsafe work practices, or even mishandling of stock, or intentional property damage, it will be easy to show your wayward worker the ‘gate’.

But, following a fair and reasonable process is mandatory, and it will be costly if you don’t do it right.

Doing it right means you must be procedurally fair and act in good faith.  This includes being honest and open with them, ensuring that you keep an open mind, listening to your employee and treating your employee with respect.  Remember, good faith underpins all employment relations (including ones on the farm), and that means being open, and communicative with your employees about employment matters.

Sometimes just getting ‘rid’ of the person, at all costs will seem tempting, and often there will become a time where a ‘pragmatic decision’ needs to be made.  But recent case law developments in the Employment Court, and Employment Relations Authority have increased compensatory awards payable in the event you get it wrong, and these will make you think twice.  The indication now is that compensation around $20,000 for a middle of the road unjustified dismissal grievance, can be expected.

While every employee has the right to challenge a dismissal in the Employment Relations Authority and Employment Court, clear cut cases of employee theft, intentional property damage, or animal abuse, with objective evidence properly put to your perpetrator employee will help put you on solid ground.

The process might be painful, but paying compensation for getting it wrong to the employee that was mishandling your stock will be even more painful.