Unfair Dismissal: Couple Wins $100k Payout

Published 12 March 2026 | 3 min read

Employment disputes continue to highlight the importance of fair process and clear communication in New Zealand workplaces. Recent cases show how quickly issues can escalate when concerns are not handled appropriately, underscoring the need for employers to maintain robust procedures and supportive working environments.

Why This Case Matters

A recent Employment Relations Authority (ERA) determination highlights the importance of robust, compliant employment processes. The case involved an Auckland café where a married couple, employed as head chef and sous chef, were dismissed following ongoing workplace tensions. The ERA found that the employer did not follow a fair or lawful process, resulting in both dismissals being ruled unjustified.

What Went Wrong

The Authority identified several serious procedural failings, including:

• No proper investigation into the concerns raised.
• No genuine opportunity for either employee to respond to allegations.
• Premature communication of dismissal decisions before a fair process could be completed.

These failures meant the employer did not meet the standard of a “fair and reasonable employer” under New Zealand employment law.

Consequences for the Employer

Due to these significant process defects, the ERA awarded the couple nearly $100,000 in lost wages and compensation for harm.

This outcome demonstrates the substantial legal and financial risks employers face when dismissals are handled without appropriate procedure.

Key Obligations for Employers

This case reinforces the need for employers to:

1. Conduct Thorough Investigations

Ensure concerns are properly explored and substantiated before any decisions are made.

2. Provide a Fair Right of Response

Employees must be given a reasonable opportunity to comment on allegations before action is taken.

3. Maintain Procedural Fairness

Fair process must be followed, even when internal tensions or operational pressures are present.

4. Document Every Step

Accurate records help demonstrate fairness and support defensible decision‑making.

Why Good Process Matters

Applying sound, transparent, and legally compliant processes not only reduces risk but also improves communication, supports stronger employment relationships, and leads to more sustainable and defensible outcomes when managing workplace issues

Stuff (February 2026). Read the full article here: https://www.stuff.co.nz/nz-news/360940276/married-couple-awarded-nearly-100k-after-unfair-dismissal-auckland-waterfront-cafe