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From time to time, we will add Case Studies to show how small businesses can find HR or Business Capacity issues challenging. We will provide examples of real cases, including previous contract examples, for business owners to be aware of with the intention of avoiding these problems in the future.
From time to time, we will add Case Studies to show how small businesses can find HR or Business Capacity issues challenging. We will provide examples of real cases, including previous contract examples, for business owners to be aware of with the intention of avoiding these problems in the future.
Previous Contracts
Previous Contracts
These case studies, based on contracts we have worked on, are good examples for businesses to read up on. Avoiding these common mistakes is critical to ensuring you are acting as a reasonable employer.
Consider the Respondent's response
Consider the Respondent's response
The Employee believed they had grounds to refuse a Drug and Alcohol Test and the Employer proposed to conduct an internal investigation. The Employee disagreed and suggested an independent investigation, to which the Employer agreed.
This was a good move by the Employer because it showed that they were prepared to consider the Employee's perspective.
The Employee had counter allegations and other issues arose during the investigation that the Employer admitted they would not be equipped to investigate.
Straightforward allegations are not always straightforward and can result in significant problems downstream in the Employment Relations Authority or the Employment Court. It is recommended to allow Employees to respond to the process and to consider their views seriously.
Workplace Relationship issues
Workplace Relationship issues
In this case a senior staff member developed a close and, initially professional, relationship with a junior staff member. Over time things developed and they became closer. At some point the junior employee rejected the senior employees approaches and things went back to normal. At around the same time the senior staff member entered into a consensual, casual sexual relationship with another junior staff member.
When the juniors found out about each other's relationship with the senior, they both complained about misconduct by the senior, citing manipulative behaviour and abuse of position by the Senior.
Was this misconduct? Can work colleagues enter into relationships as adults? Should we moralise over sexual relationships in the workplace?
What happens when the Senior tries to talk both of the juniors into keeping the relationships secret?
Was this misconduct, unwise judgement and failure to set boundaries in the workplace?
Dismissing an injured worker
Dismissing an injured worker
We were approached for advice on how to handle an employee who had become injured after suffering a stroke. Management thought they may not be able to accommodate the employees return to work because of the cost of employing another part time worker to take up the workload as the disabled employee slowly returned to work.
Bottom line, you need to act in good faith and transparently by working with the returning employee and provide them every opportunity to return to work and become a productive worker again.
Putting proposals to the worker and engaging with their Occupational Therapist was the right approach and the employee appreciated the engagement and agreed that if things did not work out, they would act reasonably too. Overall, this was a good outcome for all parties.
Case Studies from the Web
Case Studies from the Web
The following are cases we have come across that we think are interesting for business owners to be aware of. We have not worked on these cases.
Good investigation but poor process - costs awarded!
Good investigation but poor process - costs awarded!
8 March 2025 | Investigations
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.
5 Warning Signs Your Workplace Might Be at Risk.
5 Warning Signs Your Workplace Might Be at Risk.
28 April 2025 |Investigations, Risk, Smart leadership
...and what smart leaders do about it!
...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.
Good Staff Quietly Leave — without clear reasons.
People Avoid Raising Concerns — fear or frustration can create silence.
Cliques or Gossip Increase — a divided workplace lowers performance.
Performance Problems Go Unaddressed — avoidance today becomes a crisis tomorrow.
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.
Want a free Workplace Health Checklist? Download our free checklist or contact us for a confidential chat.
Forestry Worker unfairly dismissed - Costs awarded!
Forestry Worker unfairly dismissed - Costs awarded!
11 May 2025 | Investigations
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.
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