Worker seeks compensation after redundancy following performance improvement
The Employment Relations Authority (ERA) recently dealt with a personal grievance claim involving a national sales and marketing manager who was made redundant after seven years with a confectionery company, claiming his dismissal was neither substantively nor procedurally justified.
The worker argued that his redundancy was not genuine, pointing to previous attempts by management to exit him from the business and claiming the consultation process was flawed.
He contended that the restructure was based on false assumptions about client contracts and industry changes, and that his role's marketing component was not properly understood.
The worker was employed as national sales and marketing manager at the confectionery company from February 2017, earning $187,460 annually plus company vehicle and bonus payments.
He was responsible for managing major client relationships and marketing activities with a budget of approximately $20,000.
In January 2019, the company first proposed to disestablish the worker's role as part of a sales and marketing division restructure.
The worker raised a personal grievance for unjustified disadvantage through his lawyer, and after discussions with the board of directors, the company decided to give him another year to demonstrate results.
The restructuring process was subsequently withdrawn, and his employment...
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