Wellington Lawyers: Discussions of Extending a Fixed-Term Employment Agreement Are Not Enough

WELLINGTON, New Zealand - Sept. 23, 2024 - PRLog -- A fixed-term employee recently brought a claim for unjustified dismissal to the Employment Relations Authority after his employer ended his employment on the specified date in his fixed-term agreement.

Initially, the employee was hired for a one-year fixed term, though the project he was assigned to was expected to take five years. A few months before the end of the fixed term, the employer notified the employee that an extension would be offered.

However, the situation changed when the employee made inappropriate comments to co-workers, leading to a formal complaint. Following this, the employer informed the employee that his employment would end as originally planned under the fixed-term agreement. They also outlined the management of the employee during his final weeks.

The employee requested that his employment be extended, but the employer rejected the request and terminated the contract as per the original agreement.

The employee argued that an extension should have been granted, given the employer's earlier indication of an extension. However, the Employment Relations Authority found that the employer's email about a possible extension was insufficient to constitute a formal extension.

The Authority explained that further discussions were needed regarding the duration of the extension and the terms of employment, such as work hours. Without these formal steps and the employee's acceptance before the fixed-term expiration, no extension was valid.

The Authority ruled that the employment ended in line with the fixed-term agreement and that the employee was not unjustifiably dismissed.

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