A doggy day care centre in Auckland, DogHQ Albany, has been ordered to pay over $20,000 in compensation and lost wages after mishandling the extension of an employee’s 90-day trial period.
The Employment Relations Authority (ERA) found the company had disadvantaged ex-employee and acted unfairly after relying on questionable online legal advice.
Background
Kara Finnigan, a 21-year-old dog supervisor, began working at DogHQ in July 2021. Her employment was subject to a 90-day trial period. However, the Covid-19 lockdown in August 2021 led to the centers’ closure until October when restrictions eased.
Upon returning to work, Finnigan was asked by the company director to extend her 90-day trial period for another 90 days due to the lockdown interruption.
Based on legal advice from an online service called ‘Just Answer’, the director believed she could legally extend the trial period.
Finnigan agreed via email but was not informed of her right to seek independent advice about the extension.
Issues
On December 11, Finnigan attended the company Christmas party, unaware her job was at risk.
The next day, the company director informed her via email that her employment would not continue due to performance concerns. Finnigan subsequently raised a personal grievance for unjustified disadvantage and dismissal through an advocate.
ERA Holding
The ERA determined that DogHQ had no right to rely on the extended trial period when terminating Finnigan’s employment. The trial period was not suspended during the lockdown, and the original 90-day period continued to elapse.
Furthermore, the performance issues raised by DogHQ were not formally communicated to Finnigan, and she was not given an opportunity to address them adequately.
The ERA awarded Finnigan $18,000 in compensation for the stress, humiliation, and loss of confidence caused by her dismissal, along with $2,211 in lost wages.
The Authority criticised DogHQ for failing to comply with the Employment Relations Act, particularly for not encouraging Finnigan to seek independent advice regarding the trial period extension.
Takeaways
This case underscores the dangers of relying on online legal advice without consulting qualified professionals.
Employers must ensure they comply with employment laws and provide employees with the necessary support and information, especially regarding trial periods and dismissal procedures.
If you are an employee or employer unsure about your legal rights and obligations, please reach out to the team here at Watermark Employment Law.
We are proud to offer initial consultation calls free of charge.
Watermark Employment Law are specialist employment lawyers acting for employers and employees.
09 532 8211