“Retaliatory” redundancy sees employee awarded over $500,000
In Bowen v Bank of New Zealand [2025] NZERA 380, the Employment Relations Authority awarded over $500,000 to Ms Bowen, a former BNZ employee, including $105,000 compensation for humiliation, loss of dignity, and injury to feelings.
Ms Bowen was employed by BNZ and made a protected disclosure complaint about two colleagues. One of those colleagues was subsequently involved in planning a restructuring that resulted in Ms Bowen’s role being disestablished and her being made redundant. The Authority determined that there was no genuine commercial reason to disestablish Ms Bowen’s role and that this was done in retaliation for her protected disclosure. On this basis, the Authority determined that Ms Bowen was unjustifiably dismissed and unjustifiably disadvantaged.
Ms Bowen provided evidence of the impact on her health, including PTSD and a Major Depressive Disorder. The Authority ordered BNZ to pay $105,000 compensation ($60,000 for unjustified dismissal and $45,000 for the retaliation), $329,687 lost wages, $48,000 for lost bonuses, $4,378 for KiwiSaver, $8,975 for medical costs, $10,000 for the legal fees Ms Bowan incurred during the restructuring process, and an $8,000 penalty.
The case follows high monetary awards in other recent determinations. It is a stark reminder that employers must have justifiable and genuine reasons to make an employee redundant and must not be influenced by irrelevant factors.
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