Indebted employee wins $10K dismissal claim

The worker borrowed money from his boss and failed to return but the ERA insists his dismissal was unjust

Indebted employee wins $10K dismissal claim
An employee who borrowed money from his boss and failed to return it has been awarded more than $10,000 after the Employment Relations Authority said the misstep did not warrant dismissal.

Finance and insurance broker David Boone was at the Hawke’s Bay races with colleagues from Car Finance 2U when he realised he was $35 short of making a bet.

Boone asked company director Matthew Hodges to loan him the money and Hodges agreed on the condition the money was paid back as soon as possible.

The issue was raised during a taxi trip back to their hotel that evening, then two days later when both were back at the company’s offices.

Two days after that, Hodges requested the money once again, this time in front of other staff. On this occasion, Boone asked to talk to Hodges but the director shouted for him to go and get the money immediately.

Boone claims he went to get the money from an ATM but felt unwell and under pressure so decided to work from home. Hodges then called Boone and requested he return to work – Boone said he would if the pair could have a civilised conversation.

Later that day, Boone – who was in New Zealand on a work visa and was in the process of obtaining residency – received a text message informing him of his dismissal.

Boone soon filed a claim with the ERA which was heard by authority member Nicola Craig.

In her determination, Craig noted that Finance 2U did not follow correct procedure when dismissing Boone – something the company’s directors also acknowledged.

She suggested that, instead of an immediate dismissal, the company could have started a disciplinary process for non-payment of the loan.

Ultimately, Craig ordered Finance 2U to pay Boone three months’ pay with a 30 per cent reduction, noting that that Boone’s behaviour did contribute to his dismissal.

She also ordered the firm to pay $7,000 for humiliation, loss of dignity and injury to feelings, as well as $1,983 reimbursement of immigration expenses and $881 in expenses.


Related stories:
Worker awarded $21K for unjustified dismissal
Publisher to pay $140K over employment breaches

Recent articles & video

Cambridge business reports positive outcomes from 9-day fortnight

New Zealand organisations lagging in cybersecurity readiness: report

Restructures and redundancies: How HR can maintain employee trust, morale

How can employers support frontline staff?

Most Read Articles

HRD HR Awards New Zealand 2024 Winners

HR leaders gather for industry event of the year

New Zealand unveils changes to tighten visa scheme