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Compensation for humiliation, loss of dignity, and injury to feelings

Key Takeaway

In New Zealand employment law, employees can seek compensation for humiliation, loss of dignity, and injury to feelings if they have an unjustified personal grievance. This compensation, awarded by the Employment Relations Authority or Employment Court, aims to redress non-financial harm caused by an employer's unjustified actions, such as an unjustified dismissal or disadvantage.

Compensation for Humiliation, Loss of Dignity, and Injury to Feelings in NZ Employment Law

In New Zealand, employees who have experienced an unjustified personal grievance may be able to seek compensation for non-economic harm, specifically for humiliation, loss of dignity, and injury to feelings. This type of compensation is a remedy available through the employment relations system.

Legal Basis: The Employment Relations Act 2000

The primary legislation governing employment relationships in New Zealand, including remedies for employment disputes, is the Employment Relations Act 2000 (the Act). This Act establishes the framework for how employment relationship problems are resolved.

What is a Personal Grievance?

Before compensation for humiliation, loss of dignity, and injury to feelings can be considered, an employee must establish that they have a personal grievance. A personal grievance is a claim by an employee against their employer for various issues, including unjustified dismissal, unjustified disadvantage, discrimination, sexual harassment, or duress [Source: Employment Relations Act 2000, s 103(1)].

An employer's action, or how they acted, is considered unjustified if it was not what a fair and reasonable employer could have done in all the circumstances at the time the dismissal or disadvantage occurred [Source: Employment Relations Act 2000, s 103A(2)].

Remedies for Personal Grievances

Where the Employment Relations Authority (ERA) or the Employment Court determines that an employee has a personal grievance, these bodies have the power to order various remedies. The Employment Relations Authority (ERA) is an independent body that investigates and determines employment relationship problems [Source: Employment Relations Act 2000, s 157]. The Employment Court is a specialist court that hears complex employment cases and appeals from the ERA [Source: Employment Relations Act 2000, s 186].

One of the key remedies available is the payment of compensation for humiliation, loss of dignity, and injury to feelings [Source: Employment Relations Act 2000, s 123(1)(c)(i)]. This compensation is distinct from other remedies, such as:

  • Reinstatement: An order that the employee be returned to their former position or a position no less advantageous [Source: Employment Relations Act 2000, s 123(1)(a)].
  • Reimbursement of lost wages: An order for the payment of wages or other money lost as a result of the grievance [Source: Employment Relations Act 2000, s 123(1)(b)].
  • Compensation for financial loss: An order for the payment of compensation for other financial loss resulting from the grievance [Source: Employment Relations Act 2000, s 123(1)(c)(ii)].

Purpose of Compensation for Humiliation, Loss of Dignity, and Injury to Feelings

The compensation for humiliation, loss of dignity, and injury to feelings is intended to redress the non-financial harm suffered by the employee due to the employer's unjustified actions. It acknowledges the emotional distress, damage to reputation, and affront to personal dignity that can arise from such actions. The ERA or Employment Court may make such an order for the purpose of redressing the personal grievance [Source: Employment Relations Act 2000, s 123(1)].

When to Seek Independent Legal Advice

Individuals dealing with an employment relationship problem or considering a personal grievance claim should seek independent legal advice. Community Law Centres provide free legal assistance and can help individuals understand their rights and the processes involved. Specialist employment lawyers can also provide tailored advice and representation.

Key Resources