How Much Will You Get from the Employment Relations Authority?

Statutory Entitlements: This includes any unpaid holiday pay or leave entitlements. As long as the employee is credible in their claims, they should be awarded this. Any amount awarded is subject to usual income tax.

Contractual Entitlements: This includes any unpaid wages, bonuses, or commissions that the employee can prove are owing to them. To be awarded this, the employee must be able to show the written agreement for the bonus or commission, as well as evidence that they are entitled to it. Any amount awarded is subject to usual income tax. Employees can also apply for penalties to be awarded to them for breach of contract, up to the maximum amount of $20,000.

Lost Wages: Lost wages payments are awarded as the lesser of 13 weeks' pay or the actual time the employee was out of work between jobs. However, the employee has an obligation to mitigate their loss by trying to find alternative employment. They must be able to prove that they have tried to find work by producing copies of emails of job applications, interviews etc. Any lost wages awarded are subject to usual income tax.

Contribution to Costs: Even if the employer is found to be at fault, the ERA will generally only award a contribution to the employee's costs and not all of them. Currently, the daily tariff they are awarding is an amount based on $4,500 for the first day of the Authority hearing and a further $3,500 for every subsequent day. However, the costs awarded can be wildly different if either the employee or employer makes an offer of settlement to the other side, prior to the process commencing, and what is eventually awarded is less favorable than the offer for the other side.

Compensation for Hurt and Humiliation: This figure varies widely depending on the impact of the unjust termination on the employee. Typically, it ranges from $5,000 to $15,000. These payments are not income and as such, no tax is payable.  If an employee chooses to pursue a remedy for discrimination in the Human Rights Review Tribunal, awards can be as high as $45,000.

It is important to note that the ERA process can be a long and costly one, with typical times taking between 12-24 months to receive a written decision from the ERA on your matter. The actual costs vary depending on who you use and how complicated your matter is, with estimates ranging from $1,000 to $20,000. Additionally, the ERA will take into consideration the conduct of the employee in the events leading up to the termination, and may water down their awards by a percentage that they determine is fair and reasonable in relation to how they have assessed the employee's contribution to the situation. Remember that there are no guarantees when you go to court, and it is possible that the ERA may rule in favor of your employer, in which case you may not be awarded any of the four items described above.When it comes to taking a matter to the Employment Relations Authority (ERA), employees often wonder what they can expect to be awarded if they win. The answer is not always clear cut, as the formula used by the ERA can vary depending on the specific circumstances of the case. However, in general, the ERA tends to award employees in the following areas: