A man who only worked for a new employer for seven days before his job was axed has been awarded $26,500 by the Employment Relations Authority.

Adam Baxter approached Jerome Holwood in May 2018 with an offer of a job helping him across various business ventures and dealing with security and theft issues.

Holwood took the job on the promise of $25 an hour and a company vehicle. Baxter did not offer an employment agreement.

Holwood worked for Baxter on May 28 and 29 last year, then went on a scheduled holiday until June 18, when he returned and worked for another five days.

On June 25, Holwood sent a text to Baxter telling him he was too sick to work the next day.

Baxter responded: "Okay mate. I am going to take over your position mate sorry it's not worked out the place is on its last legs and I need to get involved full-time now I will sort your pay out on Wednesday."

Holwood told the authority he was in no doubt that he had been given notice. His final pay and holiday pay were deposited into this bank account later that week.

A representative for Holwood raised a personal grievance with Baxter for unjustified dismissal on August 9.

Authority member Andrew Dallas said he agreed with Holwood that there was no process undertaken by Baxter before he was dismissed.

"I further agree with Holwood that he was not put on notice by Baxter that his job was in jeopardy; was not provided with any allegations (assuming such existed and there is no evidence to suggest they did) warranting his dismissal; was not provided with any tangible information about Mr Baxter's business ventures being on their 'last legs' (other than, perhaps, a perfunctory and grammatically bereft text message); the effect that such 'last legs' whatever this actually means, might have on the future of his employment; and was not given an opportunity to answer or comment on any of the forgoing."

Dallas said because Holwood had been found to have a personal grievance for unjustified dismissal, he was entitled to an assessment of remedies.

Holwood also sought compensation for hurt, humiliation and injury to feelings from the termination of his employment.

"Holwood said he felt misled by Baxter and had turned down other opportunities to go and work for him. He said he worried about how he would cope financially. Holwood said he felt humiliated having 'to go crawling back to a previous employer and beg for work', which fortunately he was ultimately able to obtain."

Dallas said it was appropriate for Baxter to pay Holwood $15,000 for that hurt and humiliation, and $5000 as compensation for lost wages

Holwood sought a penalty under the Act for failure by Baxter to provide him with an employment agreement. Dallas said $2000 was appropriate.

Baxter was also asked to pay $4500 as a contribution to costs.

"Baxter's failure to properly engage with the Authority's processes, including providing a statement in reply, his failure to attend the investigation meeting and his failure to accept a reasonable 'Calderbank offer' made by Holwood warrant the awarding of the daily tariff in all the circumstances."