Workplace abuse, unsafe conditions led to resignation of restaurant's general manager
A former general manager of a restaurant won more than $62,000 after the Employment Relations Authority (ERA) ruled that she was unjustifiably constructively dismissed by her employer.
The ERA found that the restaurant, operated by a sole director, breached its good faith and contractual obligations to the former general manager, contributing directly to a hostile work environment that forced her to resign in February 2024.
"[The employer] breached its duty of good faith to [the employee] and its duty to provide her with a safe workplace," the ERA ruled.
"These breaches of duty were serious and destabilising for [the employee], who lost confidence in [the director's] ability to treat her fairly in the performance of her role and ensure she had a safe workplace."
General manager's departure
The former employee was employed in the restaurant in 2021 before rising to the role of general manager in 2023.
As heard by the ERA, her working relationship with the director began positively, even involving discussions of opening international branches with the former general manager at the helm.
However, the relationship soured over time, especially during a stressful period in late 2023 and early 2024 when staffing shortages and the Meatstock festival placed enormous strain on operations.
The former general manager said she was expected to work long hours, sometimes while on leave, and was subjected to verbal abuse and erratic behaviour by the director.
On February 29, 2024, tensions peaked when the director erupted into a profanity-laced outburst at the general manager in front of other staff.
A video of the incident showed the director yelling slurs and throwing a towel aggressively in her direction. That evening, she resigned by email, citing the ongoing abuse and fear for her well-being.
ERA finds constructive dismissal
In its findings, the ERA determined that the employer had failed to maintain a safe working environment, had breached its good faith obligations, and engaged in conduct that made continued employment untenable.
The Authority rejected any claim that the employee was to blame for the situation, stating there was no evidence of "blameworthy contributory conduct" on her part that would justify reducing the remedies awarded.
"Although [the employee] resigned from her employment on 29 February 2024, in substance her resignation was a dismissal," the ERA ruled. "[The employer's] actions in this regard were not those a fair and reasonable employer could have taken."
The ERA awarded the former general manager $34,560 in lost wages, $25,000 in compensation for hurt and humiliation, and $944.54 in reimbursements for the expenses she incurred on the employer's behalf during the Meatstock festival that weren't repaid.
Additionally, the employer was ordered to pay $2,400 in unpaid wages for the festival week.
