The Warehouse Group to payout $50k in constructive dismissal

Published 16 January 2024

50k awarded - Statistics confirm the high cost of overlooking mental health concerns

A case involving a former Noel Leeming employee, Stephen Perry, sheds light on the importance of addressing workplace stress to foster a healthy work environment.

How does the $50,000 payout reflect the true cost of workplace stress?

Stephen Perry's journey at Noel Leeming was marked by challenges that eventually led to his burnout, affecting not only his professional life but also his overall well-being. His story serves as a stark reminder of the need for businesses, regardless of their size, to prioritise the mental health of their employees and follow correct procedures.

The issues Perry faced were multifaceted, ranging from incorrect budgets affecting commissions to the challenges posed by high and fluctuating sales targets. The restructuring and shift to an "agile" work environment also contributed to increased administrative tasks and reduced sales support, creating a perfect storm of stressors. The mismatch in communication regarding targets and a perceived lack of empathy added to Perry's mounting challenges.

Perry's concerns extended to changes in branding and the merging of the Noel Leeming brand into The Warehouse Group. The alteration of his email, uniform, and business card, without consultation, left him feeling disconnected. The pressure to cross-sell other brands, notably Warehouse Stationery, added another layer of stress, impacting Perry's mental health and overall job satisfaction.

ERA's decision

Despite Perry's efforts to communicate his burnout and seek support, the situation escalated, culminating in his resignation and subsequent legal action. The Employment Relations Authority ruled in Perry's favour, recognising the company's failure to address his mental health concerns and awarding him compensation for constructive dismissal.

The key takeaway from Perry's experience is the critical need for businesses to proactively address employees' mental health concerns. Small-to-medium New Zealand businesses should prioritise open communication, set realistic targets, and provide adequate support to ensure a healthy work-life balance.

The case of Stephen Perry emphasises the importance of addressing workplace stressors and enabling a supportive environment. In the kiwi way of doing things, success is not just about reaching the destination but enjoying the journey together.