Selected cases

Employment Court of New Zealand · [2026] NZEmpC 146

Singh v McKee

The plaintiff, Mr Singh, claimed a higher compensation amount for humiliation and injury to feelings than the $8,000 awarded by the Authority.

Employment Court of New Zealand15 July 2026

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Quick read

  • Employers must ensure redundancy processes are thorough, fair, and well-documented to avoid findings of unjustified dismissal.
  • In Singh v McKee [2026] NZEmpC 146, the Employment Court reviewed a challenge to the Employment Relations Authority’s compensation award for unjustified dismissal.

Use this to check

  • Follow a thorough and fair redundancy process to avoid unjustified dismissal findings.
  • Compensation for humiliation and injury to feelings depends on evidence and severity of harm.
  • Compensation awards under the Employment Relations Act are separate from discrimination claims.

Decision snapshot

  1. What happened

    • Mr Itwinder Singh was employed by Mr Stephen John McKee from March 2015 until July 2017.
    • The dispute arose over whether Mr Singh was unjustifiably dismissed following a redundancy process that the Employment Relations Authority found to be truncated and incomplete.
    • Mr Singh also claimed arrears in wages and holiday pay, some of which were resolved between the parties.
    • The Authority awarded Mr Singh $8,000 compensation for humiliation, loss of dignity, and injury to feelings under section 123(1)(c)(i) of the Employment Relations Act 2000.

  2. What the court had to decide

    • The key legal issue was whether the Employment Relations Authority’s compensation award of $8,000 for humiliation, loss of dignity, and injury to feelings following an unjustified dismissal was fair and appropriate.
    • The Court had to determine the correct compensation band under section 123(1)(c)(i) of the Employment Relations Act 2000, considering the evidence of emotional harm and whether compensation should be cumulative with previous awards for racial harassment.

  3. What the court decided

    • The Employment Court upheld the finding that Mr Singh was unjustifiably dismissed due to an incomplete redundancy process.
    • However, it increased the compensation awarded by the Employment Relations Authority from $8,000 to $15,000.
    • The Court emphasised that compensation must be based on evidence and the specific circumstances of the dismissal, noting the absence of corroborating evidence limited the award.

Practical impact

Practical read

  • Employers must ensure redundancy processes are thorough, fair, and well-documented to avoid findings of unjustified dismissal.
  • When dismissals are challenged, compensation for humiliation and injury to feelings is assessed based on evidence of emotional harm and comparable cases.
  • Employers should note that compensation awards are not cumulative across different legal forums for related harms.
  • Providing clear evidence of fair process and maintaining good records can reduce the risk of higher compensation claims.

Useful next steps

  • Follow a thorough and fair redundancy process to avoid unjustified dismissal findings.
  • Compensation for humiliation and injury to feelings depends on evidence and severity of harm.
  • Compensation awards under the Employment Relations Act are separate from discrimination claims.
  • Employers should maintain clear documentation and communication during dismissals.
  • Providing corroborating evidence strengthens compensation claims for employees.

Understanding Unjustified Dismissal

An unjustified dismissal occurs when an employer ends an employee’s contract without a valid reason or fails to follow a fair and complete process. In redundancy situations, this means employers must consult with employees, consider alternatives to redundancy, and carry out the process thoroughly.

Failing to do so can lead to findings of unjustified dismissal, exposing employers to compensation claims. The Employment Relations Act 2000 provides the legal framework for personal grievances related to dismissal, including the requirement for fair procedures.

Key takeaways

  • Conduct a full and fair redundancy process including consultation and consideration of alternatives.
  • Unjustified dismissal claims often arise from incomplete or unfair redundancy procedures.
  • Clear communication and documentation during redundancies help demonstrate fairness.
  • Employees can challenge dismissals they believe are unjustified through the Employment Relations Authority or Court.

Compensation for Harm in Dismissal Cases

Under section 123(1)(c)(i) of the Employment Relations Act 2000, employees may receive compensation for humiliation, loss of dignity, and injury to feelings caused by unjustified dismissal. The amount awarded depends on the severity of the harm and the evidence presented.

The Court uses compensation bands to guide awards. Band 1 covers minor harm, band 2 covers moderate harm, and band 3 covers severe harm. Higher bands require stronger evidence such as medical or psychological reports, or credible third-party testimony. However, deeply personal emotional harm without medical evidence can still be compensated, though usually at a lower level.

Key takeaways

  • Compensation bands help standardise awards for emotional harm in dismissal cases.
  • Evidence such as medical reports or witness statements strengthens claims for higher compensation.
  • Without corroborating evidence, awards tend to be at the lower end of the relevant band.
  • Compensation must relate specifically to the unjustified dismissal, not other claims like discrimination.

How to Manage Redundancies Fairly

Managing redundancies fairly is crucial to protect your business and employees. A fair process reduces the risk of personal grievance claims and costly compensation awards.

Start by planning the redundancy carefully, consulting affected employees early, explaining the reasons clearly, and considering alternatives such as redeployment. Document all steps and decisions thoroughly. Providing support and clear communication throughout helps maintain trust and minimise disputes.

Key takeaways

  • Plan redundancies with clear, justifiable business reasons.
  • Consult with employees and consider alternatives before making decisions.
  • Keep detailed records of consultations, decisions, and communications.
  • Provide clear explanations and support to affected employees.
  • Fair processes reduce the risk of unjustified dismissal claims.

Evidence Needed for Compensation Claims

When claiming compensation for humiliation or injury to feelings, the strength of evidence is key. The Court assesses the credibility and extent of emotional harm based on what is presented.

Medical or psychological reports can strongly support claims, but other evidence such as witness statements, detailed personal accounts, or corroboration from colleagues can also be valuable. Without such evidence, the Court may limit compensation to lower bands. Employees should gather as much relevant evidence as possible to support their claims.

Key takeaways

  • Medical or psychological evidence strengthens compensation claims.
  • Witness statements and detailed personal accounts can also support claims.
  • Lack of corroborating evidence may limit compensation awarded.
  • Employees should document the impact of dismissal on their wellbeing.
  • Employers should keep records to respond effectively to claims.

Responding to Compensation Claims

Employers should respond promptly and carefully to compensation claims following dismissal. Understanding the legal framework and evidence requirements helps prepare a strong defence.

Engage legal advice early, gather all relevant documentation including redundancy process records, and consider mediation or settlement options to avoid lengthy disputes. Being transparent and cooperative can help resolve claims efficiently.

Common questions

What is an unjustified dismissal?

An unjustified dismissal occurs when an employer terminates an employee’s contract without a valid reason or fails to follow a fair and proper process, such as during redundancies.

How is compensation for humiliation and injury to feelings calculated?

Compensation is assessed based on the severity of emotional harm, evidence presented, and comparable cases. The Employment Court uses bands to guide awards, with higher bands requiring stronger evidence.

Can compensation for dismissal overlap with discrimination claims?

No. Compensation for unjustified dismissal under the Employment Relations Act must relate solely to that personal grievance and cannot be cumulative with compensation awarded for discrimination under the Human Rights Act.

What should employers do to avoid unjustified dismissal claims?

Employers should follow a fair and complete redundancy process, consult with employees, document decisions, consider alternatives, and provide clear communication to reduce the risk of claims.

Related topics

Employment & WorkplaceRegulatory ComplianceWages, Leave & PayrollDismissal, Redundancy & GrievancesDisputes, Enforcement & RemediesHealthcare & Regulated ProfessionsEquality, Discrimination & AccessibilityPayroll Deductions & Minimum Standards

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