The Board of Trustees v LGY [2026] NZEmpC 46 - interim reinstatement upheld on de novo challenge

A school Board challenged the ERA's interim reinstatement determination involving LGY. The Employment Court heard the interim issue afresh and again concluded that the employment relationship should be preserved pending determination of the substantive personal grievance.

Important: this is not a final dismissal judgment

The Court was dealing with interim reinstatement, not the final merits of LGY's personal grievance. The employer accepted there was an arguable unjustified-dismissal case and an arguable case for permanent reinstatement. The question was whether LGY should be reinstated while those issues awaited final determination.

Why interim reinstatement was maintained

The Board relied on alleged serious misconduct involving school funds and on the effect a return might have on workplace relationships and third parties. The Court considered that interpersonal difficulties did not outweigh the case for interim reinstatement and that restorative or other processes could be used to address relationship difficulties.

The Court was also concerned that some issues relied on against LGY ought to have been raised with the employee before dismissal. Additional allegations advanced by the employer were untested and were not persuasive enough at this stage to defeat reinstatement.

Balance of convenience and overall justice

Standing back, the Court concluded that the balance of convenience and overall justice favoured interim reinstatement. The Court therefore reached the same practical interim result as the Authority after conducting the challenge afresh.

Why this case matters

The case demonstrates that alleged loss of trust, staff concern and damaged relationships do not automatically make reinstatement impracticable. At an interim stage, untested allegations must be treated with appropriate caution, particularly where the employee has an arguable grievance and the consequences of remaining dismissed may be difficult to reverse.

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