A recent Employment Relations Authority case highlights the importance of employers providing employees with a written agreement before they start work. This ensures both parties are fully aware of their obligations to each other – increasing clarity and security.
The case also underscores the importance of addressing health and disability-related concerns through a fair and reasonable process – with the focus being on whether an employee can fulfil the role requirements safely.
For assistance navigating sensitive health and disability-related concerns, please contact our Employment Law experts.
Background
On 8 November 2024, the Employment Relations Authority ruled in favour of employee Keith Wards – a labourer who was dismissed by Forest Glen Limited Partnership (FGLP). This case was centred around a claim of an unjustified dismissal, an unwritten employment agreement and a claim of discrimination on the basis of disability.
In early May 2022, Mr Wards began working for FGLP however at that time he did not receive a written employment agreement. Rather, contention arose concerning whether Mr Wards was to be considered a permanent or casual employee. The two parties were unable to reach an agreement, therefore Mr Wards never signed a formal contract.
On 2 August 2022, Mr Wards informed his bosses of his medical condition, multiple sclerosis. Subsequently, on 20 September 2022 he was dismissed from his role. FGLP claimed that they were concerned of his “deteriorating health which presented risks” not only to himself but fellow employees.
The Authority’s investigation
The Authority held in relation to the following issues:
Nature of Employment
The Authority held that Mr Wards was a permanent employee at the time of his dismissal. While there was no written employment agreement, the Authority held that he worked regular hours and had accumulated annual leave. These factors supported his claim of being employed on a permanent basis.
Unjustified dismissal
The Authority held that Mr Wards was unjustifiably dismissed, because FGLP did not follow a fair and reasonable process before the dismissal. On 2 August 2022, FGLP acknowledged Mr Wards’ health challenges, however, there were “no other discussions in relation to his health”. FGLP failed to investigate whether Mr Wards was able to fulfil and carry out his employment duties safely.
Moreover, FGLP failed to provide Mr Wards with a reasonable opportunity to respond to their concerns and, without a written employment agreement, Mr Wards struggled to understand his rights as an employee. Consequently, it was held that these actions fell short of the fair and reasonable employer test under section 103A of the Employment Relations Act 2000, entitling Mr Wards to an award of remedies.
Discrimination Claim
Mr Wards claimed he was dismissed due to discrimination of his alleged multiple sclerosis diagnosis. The Authority held that his discrimination claim was unsubstantiated, deeming the disability to not be the main factor behind the dismissal. Rather, it was held that FGLP’s decision to dismiss Mr Wards was motivated by genuine safety concerns because he worked at a construction site with multiple hazards present. Furthermore, because Mr Wards maintained working after he disclosed his diagnosis, the claim was not made out.
Remedies
The Authority held that Mr Wards was entitled to the following remedies, payable by FGLP:
- $6,600 in lost wages;
- $15,000 for humiliation, loss of dignity and injury to his feelings, after being unjustifiably dismissed; and
- $1,100 gross as arrears of wages.
Key Takeaways
Wards v Forest Glen Limited Partnership highlights the importance of adhering to basic employment law obligations. Before an employee starts work, it is essential for employers to provide a written agreement. This ensures both parties are fully aware of their obligations to each other, increasing clarity and security.
Furthermore, this case conveys the importance of addressing health and disability-related concerns through a fair and reasonable process. It is imperative that the focus of this process is on whether the employee is able to fulfil the requirements of their role safely. This requires:
- A good understanding of the employee’s diagnosis; and
- Knowledge of the relevant hazards in the workplace.
We understand that health and disability-related concerns are sensitive issues, and need to be handled robustly, and with care.
For assistance navigating these matters, please contact our Employment Law experts who would be happy to help.
