KEY POINTS:
An advertising director who sought more than $1.2 million from her former employers as compensation for stress caused by an exacting client has had her claim dismissed by the Employment Relations Authority.
Shelley Menelda was an employee of advertising firm Publicis Mojo between 2003 and 2006. Her main account was the cosmetics giant L'Oreal.
The authority heard Ms Menelda was told before her appointment as an account director in March 2003 that the managing director of L'Oreal New Zealand, Frances Stead, could be difficult and exacting in her demands, but her expectations were not unrealistic.
Ms Menelda said she was confident she could meet Ms Stead's expectations.
In August 2004, Ms Menelda received a $20,000 pay rise in recognition of the "fabulous job" she was doing managing the L'Oreal account.
But by March 2005, Ms Menelda was describing her interaction with Ms Stead as "soul destroying", saying in emails to her managers she was "over it".
In June 2005, Ms Menelda said she wanted to resign because of frustrations with the L'Oreal account.
The agency fought to keep her on, paying her airfare and half the bill of a luxury five-day stay at a health resort to ease her stress.
Six months later, Ms Menelda threatened resignation again.
The agency responded by appointing two other account managers to help her with L'Oreal and investigating future options for her within the agency.
But in September 2006, after a particularly stressful meeting with Ms Stead, Ms Menelda suffered what a colleague described as a "meltdown", bursting into tears in the L'Oreal carpark.
Subsequent consultations with her GP and a clinical psychologist revealed she had suffered a nervous breakdown, and was exhibiting symptoms of post-traumatic stress disorder.
Ms Menelda appealed to the authority, saying her employers failed to keep her safe from harm at work.
She sought lost salary for 10 months, $30,000 compensation for hurt and humiliation, and a 20-year loss of opportunity claim totalling $1.2 million, based on a projected salary loss of $60,000 a year between 2007 and her expected year of retirement in 2027.
But the authority determined the company had acted appropriately in response to her concerns by responding promptly when issues were raised and by appointing new account managers to help her to balance the workload.
Furthermore, it found Ms Stead's behaviour towards Ms Menelda, while demanding, did not constitute workplace bullying.
"Rather, Ms Stead's expectations and dealings with the applicant - even at the level of detail and direction she exhibited - were part of the course of the commercial relationship and requirements between client and agency in the advertising industry."
- NZPA
