Management Liability Case Study – Unlawful Dismissal

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Management Liability Case Study – Unlawful Dismissal

Management Liability Case Study – Unlawful Dismissal

The claimant, an employee, had experienced multiple disagreements with another member of staff. The claimant felt bullied by the staff member and started to develop physical symptoms such as panic attacks and sleep deprivation.

The claimant was certified as unfit to return to work at the practice. The insured felt it was left with no option but to terminate the claimant’s employment as an operational requirement.

The employee claimed that the termination of employment was harsh, unjust and unreasonable and wanted reinstatement to the practice and an amount in remuneration for the income lost due to the termination.

A conciliation conference was attended by the Insurer and the Insured. A settlement of $17,500 was reached and the claimant’s employment was not reinstated. Legal costs of $22,000 were also incurred by the insured and paid under their Management Liability policy.

TIP: Always ensure you see a good human resources lawyer before dismissing an employee – it could save you thousands.

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