Duty to Act in Good Faith cuts both ways

The duty to act in good faith underpins employment law in New Zealand. However it is, more often than not, used in the context of the Employer’s obligation to act reasonably towards the Employee. A recent Employment Relations Authority case found that the Employee did not act in good faith by failing to participate in a disciplinary process. The Employer was then left to make a decision to terminate the employment relationship based on what information they did have. The Authority held that the dismissal was what a fair and reasonable employer could do in all the circumstances and denied the claim of unjustified dismissal.

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