Employee forced to quit after employer fails to pay his PAYE tax…

An employee who worked as a chef has had his personal grievance claim for unjustified constructive dismissal upheld by the Employment Relations Authority.

The ERA held that the employee was forced to resign after the employer breached its duty to him by failing to register him as an employee, and by failing to pay his PAYE tax. The employee felt he had no other choice but to resign as he did not want the employer’s breach to affect his employment record and immigration status. The ERA held that the employee’s decision to resign was reasonably foreseeable to the employer.

The ERA found that the employer failed to act as a fair and reasonable employer could have in the circumstances and was subsequently unable to justify the employee’s dismissal.

The ERA awarded $1,575 for wages owed plus interest. Over $2,100 plus interest was awarded for holiday pay and a $500 penalty was imposed for failing to provide the employee his wages and time records when requested to do so.

Alan Knowsley
Employment Lawyer Wellington