Fredricsen and anor v Air New Zealand Ltd and Air New Zealand Ltd v Fredricsen and anor

During the COVID-19 pandemic, Air New Zealand required its pilots to be vaccinated to continue working. Many pilots were concerned about the Pfizer vaccine and preferred the Janssen vaccine, which was only available overseas. Air NZ assisted some pilots to travel to the United States to receive the Janssen vaccine but did not communicate this option to Captains Fredricsen and Lawrence or offer them the same assistance.

The pilots felt they were unfairly disadvantaged and that Air NZ's actions undermined their confidence in being treated fairly. They brought a claim for unjustified disadvantage, arguing that Air NZ breached its duty of good faith by failing to inform them and give them a chance to comment on why they were not offered the same support.

The Employment Court found that Air New Zealand breached its statutory duty of good faith by failing to actively communicate with Captains Fredricsen and Lawrence about the opportunity to access the Janssen vaccine overseas. The Court agreed with the Employment Relations Authority that this lack of communication undermined the pilots' confidence in being treated fairly and reasonably.

The Court confirmed the Authority's award of $8,000 each to the pilots for humiliation, indignity and injury to feelings. The breach was not considered deliberate, serious or sustained, so no penalty was imposed beyond compensation. The Court also noted that after a regulatory change on 30 September 2021, any disadvantage could not be said to be unjustified.

This case shows that employers must treat employees consistently and communicate openly, especially when workplace policies affect access to benefits or requirements. If some staff are assisted in a particular way, others in similar roles should be informed and given a chance to comment if they are not offered the same support.

Failing to explain decisions or differences in treatment can undermine trust and lead to findings of unjustified disadvantage. Compensation may be awarded even if the employer acted during a complex or rapidly changing situation, such as a pandemic. The duty of good faith remains central to employment relationships regardless of external pressures.

Employers should have clear processes for communicating workplace changes and benefits, especially those affecting health, safety or employment conditions. Consistency and transparency are key to maintaining trust and avoiding disputes.

The Employment Relations Act 2000 sets out the duty of good faith in employment relationships. Employers must be active and constructive in maintaining a productive relationship, including communicating openly and honestly with employees. Section 123(1)(c)(i) allows compensation for humiliation, loss of dignity or injury to feelings caused by unjustified disadvantage.

Collective employment agreements may also set out specific obligations for communication and fair treatment. Employers should review these agreements and ensure compliance with statutory duties.