HR Insights | June 2024

June 2024 Update

Major Case Law Development:

A recent case of Parker v Magnum Hire Limited and Field highlights employer obligations around taking effective steps to provide a safe workplace for employees. The $105k award shows that bullying and harassment behaviour that leads to a employee being successful with a constructive dismissal and unjustified action leading to disadvantage personal grievance claim is costly to an employer.

Background

Mr Parker alleged that Magnum Hire Limited and Field failed to provide him with a safe workplace as Mr. Field’s bullying caused an unjustified disadvantage to his employment that forced him to resign and be constructively dismissed despite attending mediation to try and resolve matters and resigned following a proposal by the company’s counsel to carry out an investigation into the bullying claims rather than engage an independent investigator to do so.

It was interesting that this is another case the Employment Relations Authority allowed to be brought outside the 90 Day timeframe, partly because the company did not raise any issue about the bullying grievance being out of time.

Decision

The Employment Relations Authority found that Mr Parker was bullied at work and Magnum did not do anything to protect him from this unreasonable and foreseeable harm and was not provided with a safe workplace.

Mr. Parker was awarded $50K compensation for suffering significant harm and a further award of $50K for the hurt and humiliation he experienced plus $5k for an unlawful suspension plus lost wages, penalties and other monies.

The Authority also recommended the company implement a clear Bullying and Harassment Policy and Code of Conduct, and to establish a clear avenue for the resolution of complaints and investigations of bullying and harassment.

Key takeaways

• Employers have an proactive duty of care under the Health and Safety at Work Act to provide a safe workplace for employees against physical and psychological hazards.
• Employers must have clear procedures and policies for the resolution of complaints and investigations of bullying and harassment
• Employers should challenge claims that are brought outside the 90 day person grievance timeframe

Be proactive in managing your employee’s health and safety, including mental health and make sure you have policies and procedures around Bullying and Harassment. Refer Case Law section for how we can assist you with this.

For more information click here. For specialist advice in this area, please contact me at michaelp@cecc.org.nz.