'The overall interests of justice do not favour the granting of interim reinstatement in this case,' ERA rules
The Employment Relations Authority (ERA) has denied an application for interim reinstatement filed by two former employees of Whare Manaaki Incorporated (WM), following their dismissal for alleged serious misconduct.
The decision highlighted the strained relationship between the applicants and the management at WM, making their immediate reinstatement untenable.
The two applicants, Jan Frances Love and Judith Crestani, were both key staff members at the Wellington-based charity [who] got dismissed in October 2024 after being accused of misappropriating funds and operating a wellbeing fund without proper authorisation.
Their application for interim reinstatement was submitted to the ERA, seeking to return to their positions at WM pending the outcome of their claims for unjustified dismissal, lost wages, and other compensation.
Love and Crestani were both employed by WM, which operates as a charitable organisation providing support to women and children affected by domestic violence. Crestani held the role of Agency Coordinator, while Love served as an NGO Coordinator.
Their dismissal stemmed from a series of serious allegations that raised questions about financial mismanagement and misconduct within the organisation.
The allegations began to surface in early 2024, following a report from the National Collective of Independent Women's Refuges, which raised concerns about the financial management at WM.
The applicants were accused of involvement in the operation of an unauthorised wellbeing fund, which allegedly used WM funds for non-work-related expenses without the proper consent or policy.
In addition to the wellbeing fund issue, both Love and Crestani were accused of breaching the terms of their suspensions, interfering with WM property, disclosing confidential information to the media, and failing to disclose conflicts of interest regarding funding applications made in the organisation's name.
The investigation culminated in a letter from WM on October 3, outlining its findings and asserting that the applicants' actions had severely undermined the organisation's trust in them. Subsequently, both were dismissed on October 17, without notice.
In response to their dismissal, the applicants filed a personal grievance with the ERA, challenging the justifiability of their termination. They requested interim reinstatement to their roles at WM until the matter could be fully resolved. The applicants also sought compensation for lost wages and other forms of redress for the alleged unjustified dismissals.
The ERA acknowledged that the applicants had raised valid points regarding the justifiability of their dismissal, recognising that they had an arguable case that their termination may have been unjustified.
However, the ERA ultimately determined that the relationship between the applicants and WM had deteriorated to the point where interim reinstatement was not a practical or productive solution.
"I accept that the untested evidence does indicate that significant relationship issues have arisen between the parties that may have a negative impact should the applicants be reinstated," the ERA ruled.
Additionally, the ERA emphasised that granting interim reinstatement would not necessarily restore the applicants' reputations, as they had hoped.
While reinstatement could be considered a remedy if their dismissal was ultimately found to be unjustified, the interim order would not immediately address the damage done to their professional reputations or resolve the fractured working environment.
The ERA also considered that the applicants had withdrawn their request for penalties against WM during the proceedings, though the initial claims added to the complexity of the situation.
"The overall interests of justice do not favour the granting of interim reinstatement in this case," the ERA ruled. "There are current difficulties with the parties' relationship and there remains of course the allegation of impropriety against the applicants."
