Firm must pay over demotion

Invercargill company PowerNet Ltd has been ordered to pay an employee found by the Employment Relations Authority (ERA) as having been unjustifiably demoted.

ERA member Helen Doyle ordered the company to pay Kana Shanmuganathan $1875 in lost wages and $2000 in compensation after finding he was not given an opportunity to explain why he should not be demoted.

But she accepted evidence from PowerNet witnesses they had lost trust and confidence in Mr Shanmuganathan and declined his application to be reinstated to his previous role as system control manager.

Mr Shanmuganathan was demoted in December last year after disciplinary action for serious misconduct. He lodged a personal grievance and a hearing was held in Invercargill in August.

Ms Doyle noted PowerNet had told Mr Shanmuganathan that if he could improve his leadership behavioural skills he would be reassessed in December this year for possible reinstate-ment to his previous role.

''I find they are best placed to undertake that assessment.''

Mr Shanmuganathan began working for PowerNet in 2000.

At the hearing, evidence was given about a series of employment issues between him and the company.

In November 2011, he was dismissed but got his job back after a complaint to the ERA.

Disciplinary issues arose again in April 2012, September 2012 and June last year before the matter in December, which led to his demotion.

That related to Mr Shanmuganathan sending an ''inappropriate and offensive'' email to his direct supervisor and two other company managers, despite being told not to by his supervisor and another person.

Ms Doyle said sending the email could reasonably be called serious misconduct and ''demonstrated a continued lack of insight by Mr Shanmuganathan''.

''It brings his judgement into question as a leader. Without insight into behaviours it is less likely there will be a change in them.''

 

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