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Shania Mortimer v Auckland Steam 'N' Dry Limited [2025] NZERA 808 - Trial period invalid, unjustified dismissal, $30,087.30 ordered

Unfair Dismissal Cases 36 90 Day Trial 7

In Shania Mortimer v Auckland Steam 'N' Dry Limited [2025] NZERA 808, the ERA found the employer could not rely on a trial period because the clause did not meet s 67A requirements. The employer provided no evidence to justify dismissal and did not follow a fair process. The ERA ordered payment of $30,087.30 gross within 28 days (including wage arrears, lost remuneration of $13,056, $10,000 distress compensation, and costs), with ongoing interest and director involvement orders.

Employee Case Review Compensation

This page summarises and displays the Employment Relations Authority (ERA) determination Shania Mortimer v Auckland Steam 'N' Dry Limited [2025] NZERA 808. It is a strong reminder that a trial period clause must be valid (s 67A / s 67B), and that if it is not, the employer must still justify the dismissal under the normal s 103A standard and follow a fair process.

Direct link to the full ERA determination (PDF): https://determinations.era.govt.nz/assets/elawpdf/2025/2025-NZERA-808.pdf

Quick facts

  • Citation: [2025] NZERA 808
  • ERA registry: Auckland
  • Member: Rachel Larmer
  • Date of investigation meeting: 5 December 2025 (Auckland)
  • Date of determination: 15 December 2025
  • Applicant: Shania Mortimer
  • Respondent: Auckland Steam 'N' Dry Limited
  • Representatives: Richard Anderson (advocate) for the applicant; no appearance by the respondent

Background (timeline)

  • 29 July 2024: Ms Mortimer started work as an office administrator.
  • 16 August 2024: The employer emailed a dismissal letter (dated 15 August 2024) saying it did not make sense to continue the remainder of a "three-month trial".
  • 19 August 2024: Ms Mortimer was told this would be her last day at work.
  • 16 September 2025: Case management conference proceeded without the respondent; the matter continued despite non-engagement.
  • 5 December 2025: Investigation meeting proceeded without the respondent.

Non-engagement mattered

The respondent filed a statement in reply but then failed to engage with the investigation, failed to provide directed documents, and did not attend the investigation meeting. The applicant's evidence was therefore uncontested.

Key issue: was there a valid trial period?

The employer argued Ms Mortimer was dismissed within a trial period and was therefore barred from bringing a dismissal personal grievance. The Authority found the trial period provision did not meet the statutory requirements, meaning the employer could not rely on it.

Practical point

  • Trial periods are interpreted strictly. If a clause is invalid, the employee is treated as permanent from day one.
  • If the trial clause is invalid, the employer must justify dismissal under s 103A and follow a fair process.

Unjustified dismissal finding

Because the trial period clause was invalid, the employer needed to justify the dismissal. The respondent provided no evidence to justify dismissal and did not establish any fair disciplinary or performance process. The Authority held the dismissal was unjustified and the personal grievance succeeded.

Remedies and orders

Core awards

  • Lost remuneration: $13,056.00 gross (13 weeks and three days), calculated after allowing for four weeks contractual notice.
  • Distress compensation: $10,000.00 for humiliation, loss of dignity and injury to feelings (s 123(1)(c)(i)).
  • Wage arrears: $3,691.94 plus $245.86 interest to the date of determination, with ongoing interest from 16 December 2025 on any unpaid arrears component.
  • Holiday pay arrears and KiwiSaver employer contributions: ordered (including CEC amounts to be paid to IRD for KiwiSaver).
  • Costs and filing fee: $2,250.00 contribution to legal costs plus $71.56 filing fee reimbursement.
Total ordered: Within 28 days of the determination, the respondent was ordered to pay $30,087.30 gross (a combined total of arrears, interest, lost remuneration, holiday pay components, compensation, and costs).

Contribution (s 124)

Remedies were not reduced for contribution because the respondent's non-engagement meant there was no evidence of blameworthy conduct by the applicant.

Director involvement / employment standards

The Authority addressed breaches of employment standards and made orders requiring the sole director (Mr Graeme Stephens) to take steps to ensure payment. If the company could not pay, the director was required to notify the applicant in writing and personally pay the unpaid amounts to the extent of default. The director was also ordered to take steps to correct inaccurate pay information held by IRD.

Practical takeaways

For employers

  • Trial clauses must be valid: get the drafting and signing right before the employee starts.
  • Do not rely on "trial language" in a dismissal letter: if the clause is invalid, you must justify dismissal and follow a fair process.
  • Keep payroll records clean: wage and time records, holiday and leave records, and final pay advice should be available on request.
  • Notice is not optional: if the contract requires four weeks' notice, pay it or get written agreement to shorten it.

For employees

  • Ask for a copy of your signed employment agreement and check the trial period wording carefully.
  • Keep your own record of hours, pay, and key communications (texts/emails).
  • Mitigation matters: applying for work promptly can support a lost remuneration award.
  • If you are dismissed early, consider whether the employer actually followed a fair process and had genuine evidence.

Read the full determination

This is a public document hosted on the ERA determinations database. If the embedded PDF does not load on your device, use the button below to open it in a new tab.

Open [2025] NZERA 808 (PDF)

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Need help with an unfair dismissal or a trial period dispute? If you are dealing with a personal grievance (PG), a 90 day trial clause, or an ERA matter, we can help with strategy, drafting, and representation.

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