Calculating a monetary value which fairly represents emotional
harm can be difficult. After all, how do you set a figure to
compensate a person's feelings?
If an employee pursues a personal grievance in the Employment
Relations Authority or Employment Court, and is successful, they
may be awarded compensation for hurt and humiliation under
123(1)(c)(i) of the Employment Relations Act 2000. The negotiation
of an amount for compensation is also common in private settlement
arrangements.
However, calculating a monetary value which fairly represents
emotional harm can be difficult. After all, how do you set a figure
to compensate a person's feelings?
Band system
In 2017, the Authority and Court implemented a band approach,
which has now been widely recognised. Compensation awards are
accepted as being assessed in the following three bands:
