ORMSBY v BLUELAGOON NZ LIMITED [2025] NZERA 44

This page summarises and embeds an Employment Relations Authority (ERA) determination. It is not legal advice.

Story in plain English

The Authority ordered remedies and addressed unjustified dismissal issues.

In summary, On 29 June 2020, Mr Ormsby says his employment was terminated via Messenger without notice because Mr Ferey could no longer afford to pay wages. After that, The Authority found Mr Ormsby was dismissed when Mr Ferey sent the messages saying he could not afford to continue to pay him because that message amounts to a clear termination of employment at the initiative of the employer. Later, I consider it appropriate to make a global award of $20,000.00 under s 123(1)(c)(i) of the Act for both the unjustified disadvantage and dismissal.

Key case markers

• This determination comes from the Wellington registry.
• The parties are ORMSBY (employee) and BLUELAGOON NZ LIMITED (employer).
• Hearing date noted: 13 December 2024.
• Authority member: Sarah Kennedy-Martin.

Key events described

• On 29 June 2020, Mr Ormsby says his employment was terminated via Messenger without notice because Mr Ferey could no longer afford to pay wages.
• The Authority found Mr Ormsby was dismissed when Mr Ferey sent the messages saying he could not afford to continue to pay him because that message amounts to a clear termination of employment at the initiative of the employer.
• I consider it appropriate to make a global award of $20,000.00 under s 123(1)(c)(i) of the Act for both the unjustified disadvantage and dismissal.

Decision markers

• The Authority found Mr Ormsby was dismissed when Mr Ferey sent the messages saying he could not afford to continue to pay him because that message amounts to a clear termination of employment at the initiative of the employer.
• The Authority found the dismissal was unjustified and awarded compensation and lost wages.
• The Authority also found an unjustified disadvantage and made a global compensation award covering both claims.

Orders and payments mentioned

• Compensation: $20,000.00 (global award for humiliation, loss of dignity, and injury to feelings)
• Lost wages: $7,000.00 gross
• Wage and holiday arrears: $4,951.60 plus interest
• KiwiSaver: Unpaid employer contributions ordered to be paid to the fund

Note: figures above are extracted from the orders section (or the final orders wording). Check the PDF for full context and any gross/net directions.

Practical takeaways

• Unjustified disadvantage claims require both unjustified conduct and actual disadvantage.
• Dismissal justification is assessed through s 103A: what a fair and reasonable employer could have done in all the circumstances.

Read the full ERA determination (embedded)

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Source: Employment Relations Authority determination hosted on determinations.era.govt.nz.