Preston Russell Law - Legal Services for Southern People

Workplace Bullying Opens Liability

by Mary-Jane Thomas, partner category Employment Law

Some studies show that 5-10% of European employees may suffer from exposure to bullying and harassment at work. Victims often suffer psychological and physical problems, such as high stress levels, anxiety and sleep disturbances.

In New Zealand, workplace bullying can leave an employer liable if the victim takes a personal grievance against the employer for failing to ensure a safe workplace (as an employee can for sexual or racial harassment). An employer may also be liable under the Health and Safety in Employment Act.
Generally, bullying involves behaviour that is likely to justify an employer dismissing the bully or at least taking disciplinary action. Indeed, if the employer does not take appropriate steps or action the employer will be at fault. Here are some examples of how bullying has been handled by the law.
Case One: Victim of Bullying Successful in Personal Grievance Claim against Employer
Mr E worked as an employment adviser in the Kaikohe Centre for the New Zealand Employment Service. Mr M started as the new manager. His management style was described as domineering, blunt, and abrupt .He was often unpleasant and abusive.
Mr E was described as a sensitive man who felt deeply offended by Mr M’s aggressive tone and language, especially because he was frequently the focus of his attention.
The working atmosphere caused Mr E to suffer depression . He finally resigned from his job and brought a successful claim against his former employer .
The court found that every employer has an obligation is to provide a reasonable working environment and management processes, so that undue stress or indignity would not affect employees.

Case Two: Alleged Bully Makes Unsucessful Attempt for Interim Reinstatement
Cogent Communications Ltd summarily dismissed Mr G (National Sales Manager) for allegedly bullying, victimising and harassing branch mangers. Mr G made an application for order requiring his reinstatement pending a full personal grievance hearing.
The Authority refused interim reinstatement, finding "there was a significant weight of affidavit evidence indicating that as a matter of performance Mr G consistently applied a management style that was destructive of relations at senior executive level and was designed to bring about change by creating a climate of fear, suspicion and retribution among the managers and others who reported to him."
His style and manner created an unsafe place of work to the extent that unnecessary and undesirable levels of stress were experienced by at least one other employee. The Authority concluded that there was only a weak likelihood that Mr G would obtain an order of permanent reinstatement, because his behaviour was definitely blameworthy.

Case Three: Employer's Failure to Properly Address Bullying
Mr O worked for Renton Chainsaws & Mowers Ltd for approximately 5 years until he finally resigned from his job and claimed he was unjustifiably constructively dismissed.
Prior to his resigning there had been a continuous dispute between him and another employee (the manager of one of the company's branches) . Mr O said that he got pushed and shoved several times by the manager and that manager used to swear constantly and did not let him have a lunch break. After repeatedly complaining to his employer about the manager's conduct, the employer appointed another manager to check the validity of Mr O's allegations and, if necessary, take action.
When questioned, the manager denied pushing Mr O deliberately or criticising him in an offensive way. He said Mr O seemed to exaggerate and was "a bit overly sensitive to swearing and anger and took things too personally." Several other complaints and investigations neither changed nor improved the relationship between the two employees.
As a consequence of stress at work Mr O was prescribed anti-depressant and sleeping tablets. His wife testified that he talked about suicide and had feelings of worthlessness.
The Authority determined that there was a duty on Mr O’s employer to provide him with a safe and secure workplace. Although there were several investigations by the employer, these actions were inadequate and ineffective. It was the employer's duty to take the complaints more seriously, especially because the matters between the employees were apparently not improving. It was the employer's obligation to protect Mr O from any recurrence and also to inform him about the outcome of the investigations.
The Authority ordered reimbursement and a payment of compensation to Mr O.
These cases make it clear that bullying in the workplace can’t be ignored – it is the employer’s responsibility to deal with it promptly and fairly.
If you think you have a problem – give a member of our employment team a call.

Mary-Jane Thomas is head of Preston Russell's employment law team. Contact her by clicking here