The latest case is a sign that Employment Law affects all levels of employment hierarchy. A claim by the ex-CEO of Allianz insurance failed on the basis that there had been a substantial breakdown in underwriting controls and lack of good business judgement. This follows Allianz suffering a $32 million loss from a Wellington property affected by the earthquake.

The case highlights:

a) the need to be represented at any disciplinary meeting;

b) the need to ensure that all decisions makers are free from pre-determination;

c) that there is no disparity of treatment between employees;

d) that the decision making processes are reasonable;

e) the need to apply the statutory test of justification as contained within section 103A of the Act; and

f) all decisions are made in good faith.

The ERA found that there had not been any defect in the process and Allianz was justified in its decision to dismiss Mr ELISARA.