Personal grievance or legal proceedings against employer
A benefit can be conditionally paid if the client (or partner with work obligations) challenges the dismissal or loss of employment.
Before the benefit can be paid you must obtain verification that the client is challenging the dismissal or loss of employment.
When a client's former employer confirms the client ceased their employment during their employment trial but does not disclose the reason for the termination, accept the client's reason for the termination and continue with the application process. Contact with the client's former employer is still required to confirm the date ceased and any holiday pay etc.
Exception
A client can challenge their former employer's decision to end their employment and take legal proceedings if the client thinks their former employer has ceased their employment on grounds of:
- discrimination
- sexual harassment
- racial harassment or
- duress imposed by the employer in relation to client union affiliations or not as the case may be
Where a client has lost their job through misconduct, their actions must have seriously breached their contract of employment in order for their employer to be able to terminate their employment.
Clients may choose to follow up their grievance using the Employment Relations Act 2000 or the Human Rights Act 1993. They cannot use both Acts for the same grievance.
Conditions for granting the benefit
The client (or partner) is only granted their benefit on the condition that:
- they will repay all of the benefit received during the 13 week non-entitlement period if misconduct is proven and
- they may need to repay part or all of the benefit received during the 13 week non-entitlement period if they win wages, damages or other compensation
They will need to sign a statement to this effect.
When you grant a benefit (or pay a full rate of benefit) under these conditions, on the SDT1A screen you must use the 'reason for grant' code (48).
For more information see:
