LMN v STC

LMN worked for STC, a school board, and raised a long list of complaints about her treatment at work. She said the board failed to provide a safe workplace, did not support her induction or training, mishandled student records, and did not take her health and safety seriously. LMN also claimed her privacy was breached when the board contacted her past principals and references without her consent, and when they discussed her return to work with her GP.

Another key issue was how the board handled her sick leave. LMN provided medical certificates, but the board placed her on leave without pay for some periods instead of processing her sick leave. She brought a personal grievance for unjustified disadvantage and breach of good faith, challenging an earlier decision that had dismissed her claims. The Employment Court reviewed all 22 issues she raised, but only two were upheld.

The Employment Court found that only two of LMN’s 22 complaints amounted to an unjustified disadvantage. First, the board breached the collective agreement and the duty of good faith by contacting LMN’s past principals and references without her consent. Second, the board failed to acknowledge two medical certificates and wrongly placed LMN on leave without pay instead of sick leave for those periods.

All other claims, including those about induction, training, student records, bullying, and health and safety, were dismissed. The Court said these issues did not breach legal or contractual duties or cause real disadvantage. The Court ordered the board to pay LMN compensation and correct her sick leave entitlements, but also noted that the board was entitled to costs because most claims failed.

This case is a clear reminder for employers to respect employee privacy and follow proper processes for sick leave. Contacting references or past employers without consent is a breach of good faith and can lead to liability. Similarly, ignoring valid medical certificates and failing to process sick leave correctly can result in compensation orders.

However, the Court also made it clear that not every workplace issue will amount to a personal grievance. Employers are not expected to be perfect, but they must act in good faith and follow the law and employment agreements. Minor mistakes, misunderstandings, or issues that do not cause real harm are unlikely to succeed in court.

To avoid similar issues, employers should have clear processes for handling employee information and sick leave. Regular training for managers and HR staff can help prevent breaches of privacy or good faith. Documenting all employment actions and decisions is also important if a dispute arises.

For example, before contacting any reference or past employer, get written consent from the employee and keep a record. When an employee provides a medical certificate, process their sick leave promptly and confirm in writing how their leave is being handled. If a grievance or complaint is raised, respond in writing and keep all correspondence. These steps help show that you are acting in good faith and following the law if your decisions are ever challenged.

This case was decided under the Employment Relations Act 2000, which sets out the duty of good faith and the process for personal grievances. The Privacy Act 2020 also applies to handling employee information. Collective employment agreements may have additional rules about contacting references or processing leave. Employers should regularly review their employment agreements and workplace policies to ensure compliance with current law.

If in doubt, seek advice before taking action that could affect an employee’s rights or privacy.