Key Takeaways
- Shania Mortimer was dismissed from her job at Auckland Steam ‘N Dry after 15 days of work, with the company citing performance issues and financial hardship.
- The Employment Relations Authority (ERA) found that the company had breached its duties of good faith and minimum procedural fairness in Mortimer’s dismissal.
- The ERA awarded Mortimer over $30,000 in costs, including wage arrears, interest, lost remuneration, and distress compensation.
- The company failed to provide Mortimer with proper training, feedback, or guidance, and did not provide a valid trial period provision in her employment agreement.
Introduction to the Case
The case of Shania Mortimer versus Auckland Steam ‘N Dry is a striking example of the importance of following proper employment procedures and treating employees with fairness and respect. After only 15 days of work, Mortimer was dismissed from her job, with the company citing performance issues and financial hardship. However, the Employment Relations Authority (ERA) found that the company had breached its duties of good faith and minimum procedural fairness in Mortimer’s dismissal, and awarded her over $30,000 in costs.
The Dismissal Process
The dismissal process was marked by a lack of transparency and communication. Mortimer was emailed a letter by her employer, Stephens, stating that it "did not make sense to continue with the remainder of the three-month trial" and offering her two weeks’ working notice. However, when Mortimer requested the four-week notice period she was entitled to, Stephens reduced the offer to one week. Furthermore, Mortimer was verbally told that she could not work out her notice period due to a complaint made against her, alleging that she had made an unidentified person "uncomfortable". She was not given a copy of the complaint or an opportunity to respond.
The Employment Relations Authority’s Findings
The ERA found that the company had failed to provide Mortimer with proper training, feedback, or guidance, despite knowing that it was her first office-based job. The company had also failed to provide a valid trial period provision in Mortimer’s employment agreement, meaning that she was actually a permanent full-time employee. The ERA noted that a fair and reasonable employer is expected to train and support a non-performing employee to the required performance standards before dismissing them, particularly if the employee had only been employed for 15 days. The company’s failure to do so was a significant breach of its duties of good faith and minimum procedural fairness.
The Consequences of the Dismissal
The consequences of the dismissal were severe for Mortimer. She was forced to apply for over 60 jobs before securing contract work as a cleaner in December 2024. She was unable to afford to send her daughter to kindergarten and had to sell her possessions to cover household expenses. She also had to ask extended family to buy items for her daughter and could not afford to participate in family activities. The ERA’s award of over $30,000 in costs was a recognition of the significant harm caused by the company’s actions.
The Company’s Response
Auckland Steam ‘N Dry did not engage with the ERA process beyond lodging an initial statement in reply, in which it stated that Mortimer was dismissed because she was unsuitable for the role. The company claimed that Mortimer could not pursue a grievance because she was fired under the trial period provision in her employment agreement. However, the ERA found that this provision was not valid, and that the company had breached its duties of good faith and minimum procedural fairness. The company’s failure to respond further or attend the hearing was a significant omission, and the ERA’s decision was made in the absence of any further evidence or argument from the company.
Conclusion
The case of Shania Mortimer versus Auckland Steam ‘N Dry is a striking example of the importance of following proper employment procedures and treating employees with fairness and respect. The company’s breach of its duties of good faith and minimum procedural fairness had severe consequences for Mortimer, and the ERA’s award of over $30,000 in costs was a recognition of the significant harm caused by the company’s actions. The case highlights the need for employers to provide proper training, feedback, and guidance to their employees, and to follow proper procedures when dismissing them.