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ARTICLE · 27 MARCH 2018

Higher compensatory awards for personal grievances

Employers need to be aware of the increase in compensatory awards for hurt and humiliation.  .

New ZealandEmployment and HR

Recent cases in the Employment Court and Employment Relations Authority have seen employees receiving increased awards for hurt and humiliation compensation.

Until recently, the quantum of awards had not changed significantly over the past 20 years. For the 2013-2016 period compensatory awards for unjustified dismissals averaged around $6,000-$7,000, rendering the pursuit of personal grievances in the Authority and Court a financially unsatisfactory option for most employees.

There have been a rising number of Employment Court decisions where significant compensation has been awarded. In one case a $20,000 award for an unjustified disadvantage was described as "moderate", and in another a $30,000 award for unjustified dismissal was considered "relatively modest" in the circumstances.

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