The recent Employment Relations Authority decision of Gorrett v Skibo Ltd [2026] NZERA 241 is a reminder that a successful personal grievance claim does not always result in compensation.
In Gorrett, the Authority found there were significant defects in the employer’s dismissal process. The employer had moved too quickly, failed to give proper notice of the allegations, did not provide the relevant information in advance, and did not give the employee a fair opportunity to respond before dismissing him. As a result, the employee was found to have been unjustifiably dismissed.
The procedural failure resulted in the employee being awarded $12,000 for hurt and humiliation, together with one week’s lost wages.
However, the awards were reduced by 100% because of the employee’s own conduct and wrongdoing. The employee had sexually harassed a co-worker. The Authority found there was sufficient evidence for the employer to reach that conclusion, and that dismissal would have been the likely outcome even if a fair process had been followed.
The employer was ordered to pay only a $500 penalty for failing to follow the disciplinary procedure in the employment agreement.
Gorrett is a helpful example of how contribution can operate in employment disputes. Where an employee’s own conduct has caused, or substantially contributed to, the situation, the Authority can reduce any remedies. In serious cases, that reduction can be total.
The Authority confirmed this was a rare case where awarding any remedy would not be consistent with the Authority’s statutory obligation to act as it thinks fit in equity and good conscience.
This decision should not be read as ‘free pass’ for employers to shortcut a proper disciplinary process. The employer still had to defend the claim, was found to have unjustifiably dismissed the employee and was still ordered to pay a penalty (albeit small).
The takeaway is that both process and employee conduct matter. Employers should still take care to engage in a fair and properly documented disciplinary process, including where serious misconduct is alleged. But employees should also be aware that serious wrongdoing can significantly reduce, or even eliminate, any remedies they might otherwise receive.
