‘Humiliation and Loss of Dignity’: Former Employee Awarded $27,000 After Unjustified Dismissal

By Lions Roar Aotearoa News Justice Bureau

WELLINGTON, NEW ZEALAND — Sunday, February 8, 2026 — An Employment Relations Authority (ERA) ruling has sent a stern message to New Zealand employers after a worker was awarded more than $27,000 for what was deemed an “unjustified and procedurally flawed” dismissal.

The case, which centered on claims of humiliation, loss of dignity, and injury to feelings, highlights the significant legal risks businesses face when they fail to follow fair process—regardless of the alleged reason for the firing.

1. The Flawed Process

According to the ERA judgment, the employee was dismissed following a series of events the employer claimed amounted to serious misconduct. However, the Authority found the employer’s investigation to be severely lacking.

Lack of Opportunity: The employee was not given a “fair and reasonable” opportunity to respond to the allegations before the decision to terminate was made.
Pre-determined Outcome: Evidence suggested the employer had already decided to fire the worker before the final disciplinary meeting even took place.
Procedural Failures: Crucial evidence used against the employee was never shared with them, a direct breach of the Employment Relations Act.

2. The Emotional Toll: “Loss of Dignity”

A significant portion of the payout—$20,000—was specifically awarded for non-financial loss.

Injury to Feelings: The employee provided testimony regarding the deep emotional distress, anxiety, and “loss of standing” in their community following the sudden dismissal.
Financial Loss: The remaining $7,000+ was awarded to cover lost wages and the period the employee remained out of work while searching for a new role.

3. A Warning to Employers

Employment law experts say this ruling is a textbook example of why “getting the process right” is just as important as having a valid reason for dismissal.

Good Faith: Employers are legally required to act in “good faith,” which includes being communicative and transparent.
The “Reasonable Employer” Test: The ERA asks: Would a fair and reasonable employer have acted this way in these circumstances? In this case, the answer was a resounding “No.”

“This wasn’t just a loss of a job; it was a loss of dignity. The way the dismissal was handled left the employee feeling discarded and humiliated.” — ERA Member Statement.