A freight company must pay $8000 to a truck driver who was unfairly laid off while sick and isolating in the early days of the Covid-19 pandemic, the Government's employment watchdog has ruled.

Steve Hoebergen, a driver for Bay of Plenty transport company Amline Freighters Limited (AFL) since 2017, was sent home sick from work on March 19, 2020, when he developed cold-like symptoms.

He called the operations manager that day and advised he was isolating following advice from the Covid-19 helpline.

That weekend, he was sent a text message by a director of the company, Miles Roberson, 'to the effect that if he was not at work on Monday 23 March he would be dismissed”.

After he did not attend work on the following Monday because he was isolating as directed, he did not receive his pay.

On March 31 he received a final holiday pay and on April 15 he was formally told in a letter that his services were no longer needed.

Taking the dispute to the Employment Relations Authority (ERA) as a personal grievance, Hoebergen sought compensation, saying his dismissal was unjustified.

In an authority decision on the case, AFL said Hoebergen was not dismissed and claimed he was a casual relief driver employed on an 'as required” basis, and that it did not require his services after April 2020.

Roberson said he had concerns about business decline and how that might affect his ability to employ staff. He needed his staff to 'step up” to face the challenges of the Covid-19 environment, and, concerned about Hoebergen's reliability, he felt it was fairer to tell him they did not need him any more.

After investigating, the authority ruled that although Hoebergen had initially been employed as casual labour, at the time he was dismissed he was a permanent employee of the company.

As such, he was entitled to have his employer put its concerns to him and to be provided a fair opportunity to respond and have any response fairly considered.

Because AFL did not meet these requirements of employment legislation, the ERA agreed the dismissal was unjustified, and that the company should pay Hoebergen $8000 to 'compensate the humiliation, loss of dignity and injury to feelings”.

No additional amount was awarded for lost pay, as ERA considered that Hoebergen had not looked for other employment, which he said was due to the Covid lockdown.

'He suggests he was unable to do so because of the negative impact of his dismissal but the evidence of this and his steps taken to find alternative employment was not strong. While I accept this was the Covid-19 lockdown period which would have created some challenge to securing new employment it did not prevent Mr Hoebergen attempting to do so. On balance, I find Mr Hoebergen has not made himself available for work. No remedy of lost wages is made.”

The New Zealand employment court has previously warned businesses against labelling employees contractors to avoid contractual obligations.

In this case, the ERA said that although AFL had incorrectly characterised Hoebergen as a casual employee rather than permanent, 'it genuinely held that view”, and as such, a finding of breach of good faith was not warranted.

-Annemarie Quill/RNZ.