Constructive dismissal occurs when an employer‘s actions or inactions make an employee’s job or workplace so intolerable that the employee feels compelled to resign.

Scenarios Leading to Constructive Dismissal

1. Ultimatum: The employer gives the employee a choice between resignation or dismissal.
2. Intentional Conduct: The employer deliberately engages in behavior aimed at inducing the employee to resign.
3. Breach of Obligations: The employer breaches their duties to the employee so significantly that it becomes foreseeable the employee would resign.

Details of Each Category

– Category 1: The most straightforward case, often involving an explicit ultimatum.

– Category 2: Requires proof of the employer’s intention to induce resignation, which can develop over time.

– Category 3: Occurs when the employer’s breach of duty is serious enough that resignation becomes a foreseeable consequence, even without the employer intending the employee to resign.

Case Study: Price v Pinevale Farms Ltd [2023] NZERA 45

Ms. Price worked at Pinevale Farms as a relief milker, later taking on additional duties without a written employment agreement. Her resignation cited several grievances:

– Lack of an employment agreement despite requests.

– No regular days off.

– Changes to the roster without agreement.

– No pay increase for extra hours worked.

– Failure to provide paid holidays and proper remuneration for public holidays worked.

– Reduction of hours and subsequent complaints about work output.

The Employment Relations Authority awarded Ms. Price $20,000 for hurt and humiliation and over $36,000 in unpaid wages and holiday pay, plus interest on the outstanding amounts.

Key Points

– Fact-Specific: Each case of constructive dismissal requires careful examination of the specific facts and conduct involved.

– Personal Grievance Claims: Constructive dismissal often leads to personal grievance claims. These must be raised within 90 days from the date of the grievance or when the employee becomes aware of it.

Legal Assistance

If you believe you have grounds for a personal grievance based on constructive dismissal or are an employer needing to respond to such a claim, contact one of our experienced lawyers for assistance.

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For professional legal advice on constructive dismissal and personal grievance claims, schedule a consultation with our expert team. Leading law firms offer fixed-price initial consultations to help you understand your options efficiently.