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Employment Court Confirms 'Statutory Curb' On Ability To Justify Dismissals.

Article Excerpt
In late 2004 a new definition of what counts as 'justifiable' dismissal or other employer action was inserted into the Employment Relations Act (the ERA). The Employment Court has just issued a definitive judgment confirming that the new test, in section 103A of the ERA, makes it substantially more difficult for an employer to justify dismissal or other disciplinary actions. This is a significant decision.

The case is noteworthy for Judge Shaw's dissection of Air New Zealand's investigative procedures - it is clear the Court is now taking the view that employers must get every jot and tittle of the investigation process right - otherwise they face a significant risk of being found to have acted in an unjustified way.

Air New Zealand Limited v Hudson - the facts

Andrea Hudson had been a customer service agent with Air New Zealand since 1995. Air New Zealand dismissed her in December 2004, relying on three incidents:

A claim that she had pushed another Air New Zealand boarding agent at the gate of an Air Tahiti Nui flight.

Complaints from LAN Chile about the way that Ms Hudson had treated a business class passenger at check-in. LAN Chile asked that Ms Hudson no longer perform any work for it.

A passenger complaint that Ms Hudson had required them...