Case Studies

We recently reviewed a case from the Employment Relations Authority (ERA) that clearly shows that process failures can result in significant penalties for the business owner no matter how well-intentioned your investigation may have been.

We have anonymised the information even though ERA determinations are public records. The intention of these case studies is to provide an example, not to continue to publicise names of businesses and individuals.

This case relates to an employee accused of theft from a third-party premises that was a client of the employer. There was a long-standing tradition that employees of the third-party company could take waste products home and this tradition grew slowly to allow other parties to help themselves too, however none of this was written down.

One day the employee arrived at the third parties work and took some product. The employee was not on shift but came to the premises in their own time and took the product. They were seen and a complaint was made to their employer.

The employee when interviewed admitted taking the product and the owner fired them immediately.

The ERA determined that the employer was justified in firing the employee for serious misconduct, but the employer failed to provide the employee with a copy of the investigation report nor give them the right to respond.

The employee was not reinstated but the employee was awarded costs of one-months lost wages and several thousand dollars in compensation.

...and what smart leaders do about it!

As a business owner, you're focused on growth, customers, and performance. But hidden workplace issues can quietly derail your success — often without obvious signs. Here are 5 subtle warning signs your workplace might need attention.

1. Good Staff Quietly Leave — without clear reasons.

2. People Avoid Raising Concerns — fear or frustration can create silence.

3. Cliques or Gossip Increase — a divided workplace lowers performance.

4. Performance Problems Go Unaddressed — avoidance today becomes a crisis tomorrow.

5. Complaints Are "Handled Internally" Without a Clear Process — lack of independence invites risk.

Smart business owners don't wait for a formal complaint or a legal claim. They act early to protect their people, reputation, and profits.

At Investigate South, we provide independent, discreet workplace investigations and mediation services designed to strengthen your business and build a culture of trust.

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This case-study is very typical, sadly. We see here a good employer trying their best but just not following proper procedures, which ended up costing them $15,000 and 3-months loss of wages to their unfairly fired worker. Let's dive in.

AB worked for FT as a forestry worker. For the first 12 months of employment, he never had any disciplinary cases recorded against him. This is important, because FT later claimed there were numerous incidents of failing to follow procedures, but...they were never recorded!

On the day in question, AB did not wear his correct PPE and his employer caught him, argued with him and fired him by txt later on in the day. AB complained about unjustifiable dismissal and claimed compensation for loss of dignity, unfair dismissal, and loss of wages.

In evidence FT claimed that there had been numerous "Toolbox" meetings with the whole team about safety and reminders about the risks of failing to wear proper PPE in the high-risk forestry industry. While all of that was not in dispute, a Toolbox meeting is not a disciplinary investigation and FT cannot use informal, workplace meetings as evidence of misconduct in a subsequent Employment Relations Hearing.

FT was found to have unfairly dismissed AB by failing to conduct a fair, independent investigation and a failure to give AB the opportunity to respond to any investigation.

This is all too familiar, and once again we see an employer operating out of their depth, thinking they have the authority to 'fire' without investigating, without recording misconduct, and without giving the right to respond.

Had FT stopped, called an independent investigator in to review the evidence, collect the facts, and write an independent investigation report, things could have been so much different.