Your Rights: Unjustified dismissal likely

Q: I am employed as a fulltime chef. Recently my employer called me into a room and told me the business wasn't doing well so she would have to decrease my pay from $30 an hour to $15 an hour. I didn't agree but a week later she gave me a letter telling me my employment was terminated because I wouldn't agree to have my wages cut and the slowdown during winter meant she couldn't keep me on. Is this allowed?

A: It doesn't sound like it. First, your employment agreement can't be varied unless both parties agree, so you were under no obligation to accept a wage cut.

Second, the employer had no right to simply give you four weeks' notice. Many employment agreements state that employment can be terminated by either party giving a set period of notice.

Occasionally, employers mistakenly think that they can terminate a worker's employment just by giving this notice.

However, for many years the law has said that employers can give an employee notice only if they:

* Have justifiable cause; and

* Follow a fair process before making any decision to dismiss.

"Justifiable cause" means misconduct (including serious misconduct), poor performance, incapacity (such as continual sickness) or redundancy.

The "fair process" required will vary, depending on which of these four reasons the employer is relying on.

Before dismissing for redundancy, fair process will almost always involve meeting with you, telling you about the proposed restructuring, getting your views and considering them before making a decision (this is the minimum - there are various other details that the employer will need to comply with).

In your case, the employer may have been able to dismiss you for redundancy - if there really was a slowdown that meant your role wasn't required.

However, it appears your employer has failed to follow a proper process and you probably have a strong case for unjustified dismissal.

It would be a good idea for you to talk to a lawyer or an employment advocate.

Most likely they would write to the employer and either attempt to settle the matter directly or reach a settlement at mediation.

Most cases do settle at mediation, but if the employer is unwilling to pay an amount which you consider sufficient - or reinstate you back to your old job, if this is what you want - you can take legal action in Employment Relations Authority.