Roseanne Sheridan was employed by Pact Group as a Community Support Worker under a collective agreement. After being dismissed for medical incapacity, Pact Group sent her a termination letter on 28 July 2021, stating her employment would end 'two weeks from today', which they specified as 10 August 2021.
Selected cases
Employment Court of New Zealand · [2023] NZEmpC 235
Pact Group v Sheridan
Pact Group v Sheridan [2023] NZEmpC 235 clarifies how notice periods are calculated under New Zealand employment law.
Employment Court of New Zealand20 Dec 2023
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Quick read
- The Employment Court confirmed that when a collective agreement requires 'two weeks' written notice', the notice period starts the day after the notice is given.
- Pact Group v Sheridan [2023] NZEmpC 235 clarifies how notice periods are calculated under New Zealand employment law.
Use this to check
- Notice periods under collective agreements start the day after notice is given.
- Employers must allow a full 14 days for 'two weeks' notice.
- Miscalculating notice periods can affect grievance timeframes.
Decision snapshot
What happened
- Roseanne Sheridan worked as a Community Support Worker for Pact Group under a collective agreement.
- Pact Group dismissed her for medical incapacity and sent a letter on 28 July 2021 stating her employment would end 'two weeks from today', specifying 10 August 2021 as the end date.
- Sheridan’s union, E tū, raised a personal grievance on 8 November 2021.
- The dispute centred on whether the grievance was raised in time, which depended on how the notice period was calculated.
What the court had to decide
- The legal issue was whether the notice period required by the collective agreement should include the day the termination letter was given, or start the following day.
- This affected the calculation of the end date of employment and whether the employee’s personal grievance was raised within the statutory timeframe under the Employment Relations Act 2000.
What the court decided
- The Employment Court found that the notice period started the day after the notice letter was given, requiring 14 full consecutive days for 'two weeks' notice.
- Employment ended on 11 August 2021, not 10 August as stated in the letter.
- This meant the union’s personal grievance, raised on 8 November 2021, was within the statutory timeframe.
Practical impact
Practical read
- The Employment Court confirmed that when a collective agreement requires 'two weeks' written notice', the notice period starts the day after the notice is given.
- Employers must allow a full 14 days after the notice date before employment ends.
- Miscalculating the notice period can give employees extra time to raise a personal grievance.
- Employers should double-check their termination letters and ensure their HR processes align with this interpretation to avoid costly disputes.
Useful next steps
- Notice periods under collective agreements start the day after notice is given.
- Employers must allow a full 14 days for 'two weeks' notice.
- Miscalculating notice periods can affect grievance timeframes.
- Termination letters should specify the correct end date.
- HR processes must align with legal notice period requirements.
The story
Sheridan’s union, E tū, raised a personal grievance for unjustified dismissal on 8 November 2021. The dispute was about whether the grievance was raised within the statutory timeframe, which depended on how the notice period was calculated under the collective agreement.
This case serves as a reminder for employers and HR teams: the way you calculate notice periods can directly affect the legal rights of employees and the risk of disputes. If you get the calculation wrong, you may inadvertently extend the time employees have to raise grievances, or you may cut it short and face challenges from unions or employees.
Key takeaways
- Notice periods under collective agreements start the day after notice is given.
- Employers must allow a full 14 days for 'two weeks' notice.
- Miscalculating notice periods can affect grievance timeframes.
- Termination letters should specify the correct end date.
- HR processes must align with legal notice period requirements.
What the Court decided
The Employment Court examined the wording of the collective agreement, which required 'two weeks written notice'. The Court found that this meant 14 full consecutive days, starting the day after the notice was given. The Court rejected Pact Group’s argument that the notice period should include the day the letter was handed over.
As a result, the notice period ran from 29 July 2021 to 11 August 2021, making 11 August the actual end date of employment. This meant the union’s grievance, raised on 8 November 2021, was within the statutory timeframe.
The Court also noted that the phrase 'from today' in the termination letter did not override the requirement for two full weeks of notice. Counting the day the letter was given would result in only 13 days plus part of the fourteenth day, which is not consistent with the plain meaning of 'two weeks'. The Court preferred the interpretation that gives employees the full period agreed in the collective agreement.
How to read this for your business
If your employment contracts or collective agreements require a set notice period, do not count the day the notice is given. Start counting from the next day. This affects when employment ends and when grievances can be raised.
Review your termination letters and HR processes to ensure they specify the correct end date and comply with the notice period requirements. Miscalculating notice can lead to disputes and legal challenges.
For example, if you give notice on 1 March and your agreement requires 'two weeks' notice, employment should end on 15 March, not 14 March. This gives the employee the full 14 days as required. If you count the day notice is given, you risk ending employment early and may face a challenge if the employee raises a grievance.
Operating checklist
To avoid disputes about notice periods and grievance timeframes, follow these practical steps:
By following these steps, you reduce the risk of legal challenges and ensure your processes are fair and compliant. This is especially important for small businesses, where employment disputes can be costly and disruptive.
Common questions
Does the day an employee receives a notice of termination count toward the notice period?
No. The Employment Court confirmed the notice period starts the day after the notice is given, not on the day the letter is handed over.
What happens if a personal grievance is raised one day late?
If the grievance is raised outside the statutory timeframe, it may not proceed unless exceptional circumstances exist. In this case, the correct calculation meant the grievance was raised in time.
How should employers word notice letters to avoid confusion?
Employers should specify the exact end date and clarify that the notice period starts the day after the letter is given, ensuring compliance with the collective agreement.
Does this ruling apply to all employment contracts?
The ruling applies to contracts and collective agreements requiring a set notice period. Employers should check their agreements and follow the same approach unless the contract specifies otherwise.