Executive claims flawed process, but employer says financial breaches proved dishonesty

The Employment Relations Authority (ERA) recently dealt with a case involving a chief executive who was dismissed for alleged serious misconduct after an investigation into financial management concerns, raising important questions about procedural fairness and conflict of interest management in workplace investigations.

The worker argued that his dismissal was unjustified, claiming the investigation process was flawed and that he had not been given adequate opportunity to respond to allegations.

He maintained that concerns about his performance had never been properly raised with him before the investigation commenced, and that the speed of the dismissal process was unfair.

The employer defended the dismissal, arguing that the worker had breached good faith obligations through failures to manage conflicts of interest and financial management responsibilities.

The organisation maintained that the worker's conduct had fundamentally undermined trust and confidence, justifying summary dismissal for serious misconduct.

CEO's company liquidation triggers investigation

The worker had been employed as chief executive of a sports association from early 2022 until his dismissal in December 2023. Prior to his appointment, his company had entered into a sponsorship agreement providing $10,000 per year in "in kind" services for three years in exchange for free advertising. This arrangement created...

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