Preston Russell Law - Legal Services for Southern People

Probationary Periods and Unjustified Dismissals

by Mary-Jane Thomas, partner category Employment Law

Correct procedure must be followed when dismissing an employee who is subject to a probationary period. Ms W was unjustifiably dismissed by Dive HQ Tauranga after a three-month probationary period.

Her employment agreement stated she could only be dismissed from her probationary employment after three investigation/disciplinary meetings, two written warnings and the final performance review, and only if the Employer considered she had failed to meet the required standards.

Ms W started work on 9 November 2005. She received a first verbal warning on 9 December 2005, after a complaint from a school teacher that she conducted herself in an unprofessional manner. Ms W only received that one verbal warning and on 3 February she was given two weeks notice of the termination of her employment.

The question the Authority must ask itself is this – were the employer’s actions what a fair and reasonable employer would have done in all the circumstances at the time of the dismissal?

The Authority said that a reasonable employer would not have dismissed Ms W and held that Ms W was entitled to payment of the sum of $2,000.00 as compensation for humiliation, loss of dignity and injury to feelings arising from her dismissal.

There are less stringent procedural requirements in the case of an employee on a trial period, but this does not release an employer from its obligation to act fairly. The Courts have set out some guidance for employers.

Firstly, every probationer may be taken to realise that being on trial, he or she will be under close and critical assessment and that permanent employment will be assured only if the employer’s standards are met.

The employer, however, must be ready to point out shortcomings, to advise about any necessary improvement, and to warn of the likely consequences if the expectations are not met.

If it becomes apparent to the employer, judging fairly and reasonably, that the trial is not a success, the employee is entitled to fair warning before the end of the probationary period that the employment will then be coming to an end.