Furniture argument leads to costly firing

A heated exchange over a measurement error led to the unjustifiable dismissal of a cabinet maker, the Employment Relations Authority has found.

Paul Eastwick, the sole director of Nico Kitchens and Joinery in Rangiora, just outside of Christchurch, has been ordered to pay former employee David Penman $9545 in lost wages and $6800 in compensation.

The authority found Penman had been unjustifiably dismissed after he was confronted by his boss over a mistake in the measurement of a bench top, which would cost the company $1500 to fix.

However, Eastwick said he believed Penman had resigned and would be paid out his two weeks’ notice period.

Eastwick said the bench top was one of three mistakes Penman had made during his eight months at the joinery company.

During the conversation Penman became defensive, arguing that the mistake originated in the way the plans were drawn up.

Both men agreed Eastwick had asked his former employee whether the company was the right place for him.

Eastwick said Penman then resigned and was told to collect his tools. Penman said he was told to pick up his tools and leave.

Authority member Helen Doyle found it was reasonable for Penman to believe he had been fired, and Eastwick made no attempt to correct what had clearly been a misunderstanding.

As an employer, Eastwick needed to follow a fair and reasonable process, she said.

This included disclosing specific reasons for the dissatisfaction, identifying a reasonably specific and measurable improvement to be made, and allowing reasonable time to demonstrate any improvement.

The compensation award for emotional distress was reduced by 15 per cent to take into account Penman’s defensiveness during the confrontation.