Worker claims retaliation by employer through false police complaints and pay deductions
The Employment Relations Authority (ERA) recently dealt with a personal grievance claim involving a scaffolding worker who faced multiple workplace violations, including unpaid wages, unlawful deductions, and false theft allegations that led to his arrest and criminal charges.
The worker argued that his employer subjected him to unjustified disadvantage through various means, including failing to compensate him for hours worked, making unlawful pay deductions, exposing him to health and safety risks, workplace bullying, and demotion from supervisory duties. He claimed these circumstances forced him to resign in what amounted to constructive dismissal, but was then formally dismissed during his notice period.
The case highlighted serious workplace violations, including retaliation through false police complaints and interference with future employment opportunities.
The worker sought compensation for lost wages, unlawful deductions, and significant personal distress caused by the employer's conduct, which ultimately resulted in criminal charges that were later withdrawn when no evidence was presented.
Workplace violations under employment standards
The worker started employment in May 2023 after moving to Wellington from Morrinsville. He had previously worked for another scaffolding company and was recruited for a leading hand role that represented a promotion with higher pay. The position was offered after an interview with the operations manager at the scaffolding company.
Shortly after starting, the worker became concerned about serious workplace violations. He witnessed the operations manager instructing company staff to operate heavy vehicles without appropriate licences and using unqualified scaffolders who worked without supervision or training.
The worker also discovered that the operations manager would manipulate the timekeeping software to reduce wage costs.
When the worker challenged these practices, he was subjected to verbal abuse and berating from the operations manager.
The situation escalated when company staff were apprehended by police for using heavy vehicles without appropriate licences. After raising this incident again with management, the worker was demoted by having his authority over staff removed.
Pay deduction disputes and resignation
The worker's main concern centred on pay discrepancies that began appearing a few months into his employment.
Despite using his thumbprint to sign in at 6:30am, his first hour was invariably short-paid, as if he had logged in at 7:30am instead. When he made inquiries and followed up with the operations manager, he was told it would be sorted out, but the problem persisted.
In September 2023, the situation worsened when the worker received a speeding camera fine and $80 was deducted from his pay. This deduction then occurred every week, with multiple deductions being made without the worker's agreement to any deductions from his income.
By 25 September 2023, the worker had reached his limit and wrote a resignation email addressing his concerns to management. He raised all the issues he had experienced with the operations manager and gave notice, stating his last day of work would be 20 October 2023. Following this resignation, he applied for work at his previous employer again.
False theft allegations and dismissal
On 9 October 2023, during his notice period, the operations manager called the worker into the office and told him there had been a three-month-long police investigation into him. The operations manager claimed the worker had been seen stealing company equipment and that there was CCTV footage of him unloading company property.
When the worker refuted what appeared to be fabricated allegations, he was told the police now had the matter.
He was then dismissed without notice and ordered off the premises. The company director later apologised to both the worker and his partner at the investigation meeting, saying he had been unaware of the operations manager's behaviour until later.
The false allegations had immediate consequences for the worker's employment prospects. His contact at his previous employer texted him advising that he could no longer be employed there because of the theft allegation.
The worker visited police stations in the district to ask if there was an investigation into him, and staff at both stations told him there wasn't.
Personal impact and criminal proceedings
The worker's evidence about the effect of these events was described by the ERA as "harrowing." He said he was shocked and in disbelief, and the situation was compounded by losing his job opportunity due to the false theft allegations.
The impact extended to his family, with the worker having to approach his wife's family for financial assistance.
On 31 October 2023, police arrived at his house and arrested him based on the formal complaint lodged by the operations manager for alleged theft of company property.
The worker continued to suffer the effects of these false allegations for months while the matter proceeded through the criminal justice system.
On 16 July 2024, the worker attended his court hearing, where no evidence was offered by police, and the charges were withdrawn. Later, the worker discovered that the operations manager had been charged with the theft of company equipment.
It appeared the operations manager saw the worker as a scapegoat, someone he could blame for the thefts to divert suspicion from himself.
Employment law findings and compensation
The company and director did not defend or rebut the worker's claims. Indeed, the director indicated that the claims were true but that he himself was unaware of the situation at the time of the dismissal. The director apologised on behalf of the company for what had happened during the investigation meeting.
The ERA found that the company had "significantly let down its employee" and noted that while there were unusual circumstances and the company had also been damaged by the operations manager's actions, "ultimately the buck stops with [the director] as the guiding force behind [the company]."
The Authority determined it was his responsibility to ensure the worker was treated fairly.
The ERA found in favour of the worker on all claims, noting that some claims needed to be re-categorised. The underpayment of wages and unlawful deductions were clear statutory breaches.
While the worker had submitted a resignation, the simple fact was that he was dismissed during the notice period he had given, making that dismissal unjustified.
Compensation awards and final orders
The ERA ordered the company to make payments totalling over $33,000 to the worker. This included $2,720 for compensation of lost remuneration and $560 in respect of monies unlawfully deducted from his pay during his employment.
The largest component was $30,000 awarded "for humiliation, loss of dignity and injury to feelings [the worker] suffered as a result of being subjected to multiple health and safety risks, workplace bullying, demotion and his unjustified dismissal."
This substantial award reflected the serious nature of the false theft allegations and their impact on the worker and his family.
The ERA also joined the company director to the proceedings as a person involved in the breaches. Should the company not be in a position to meet the payment of the minimum entitlements, the director was ordered to meet these payments himself.
The worker's counsel advised during the investigation meeting that claims for penalties were no longer being pursued, which could have resulted in additional financial consequences for the employer.
