Using school funds to have family tag along on an authorised school trip can be grounds for dismissal, with the Employment Court ordering reinstatement of a school deputy principal while an investigation continues. Recent law changes block, in future, orders for interim reinstatement where an employee’s behaviour is at issue.
Names of the school and deputy principal were supressed by the Employment Court.
The court was told she had worked at the school for nearly thirty years; starting as a teacher, rising later to deputy principal.
In both 2019 and 2023 she organised fundraising campaigns enabling students to attend World of Wearable Arts shows in Wellington. Also funded for travel and attendance were parent helpers, many of whom helped with the fundraising.
A parent complained after the 2023 trip that school funds were spent on tickets for members of the employee’s family.
The school board of trustees responded that it ‘totally and strongly rejects any suggestion of misuse of money.’
Eleven months later, the board fired her.
The Employment Court was told further information about her testy workplace relationship with some staff had now come to light, some of these complaints stretching back for over a decade.
Misuse of school funds for the Wearable Arts shows was the primary reason for termination, the board said. This misappropriation amounted to dishonesty, it said.
It is entitled to require a greater level of trust in a senior employee who has delegated powers to deal with school funds, the board said.
The employee strongly denies there has been any misappropriation. She has receipts for money spent on fundraising where she did not seek reimbursement; sufficient money to cover family member trip costs, she says.
Pending a full inquiry by the school board into all allegations, the Employment Court ordered her reinstatement, through a managed reintegration process overseen by Business, Innovation and Employment’s mediation service.
For future cases, interim reinstatement will not be an option, the Employment Court pointed out.
A 2026 amendment to the Employment Relations Act blocks reinstatement or compensation for personal grievance cases where the employee’s behaviour contributed to the problem.
These new rules apply to cases filed since the amendment.
Board of Trustees v. LGY – Employment Court (11.03.26)
26.097