Settlement Expectations
For most cases of unjustified dismissal, the most that the employee can expect to receive if they take their case to the Employment Relations Authority is up to three months loss of pay (or the actual loss if this is less) plus a tax free award for hurt and humiliation, plus a contribution towards costs. There are some cases where more can be awarded and we have been successful in obtaining far higher negotiated settlements, however, the general maximum must be kept in mind.
If the employer is receiving competent advice they will also be aware of these figures. In our experience if an employee asks for a settlement well in excess of the general maximum (for example a full year's loss of wages or salary) this may cause settlement negotiations to break down as it shows that the employee is unrealistic resulting in the employer seeing no possibility of a successful negotiation and/or that the employee has an incompetent adviser.
We have negotiating techniques that will assist in obtaining the maximum realistically possible and we are able to assess if a case is one that can realistically expect to receive a settlement above the usual range. We can more easily assist you to obtain an above average settlement if you involve us at an early stage. Involvement at an early stage gives more flexibility to both sides to negotiate a settlement that in dollar amounts is higher than could be expected at the ERA and/or to maximise the tax free part of the settlement without causing IRD problems. Please contact us if we can help.
If the employer is receiving competent advice they will also be aware of these figures. In our experience if an employee asks for a settlement well in excess of the general maximum (for example a full year's loss of wages or salary) this may cause settlement negotiations to break down as it shows that the employee is unrealistic resulting in the employer seeing no possibility of a successful negotiation and/or that the employee has an incompetent adviser.
We have negotiating techniques that will assist in obtaining the maximum realistically possible and we are able to assess if a case is one that can realistically expect to receive a settlement above the usual range. We can more easily assist you to obtain an above average settlement if you involve us at an early stage. Involvement at an early stage gives more flexibility to both sides to negotiate a settlement that in dollar amounts is higher than could be expected at the ERA and/or to maximise the tax free part of the settlement without causing IRD problems. Please contact us if we can help.