Wednesday, 11 April 2018

Constructive dismissal claim fails…


The Employment Relations Authority has rejected a claim for constructive dismissal from the Manager of a health centre.  The health centre was in financial difficulties and the owners were working with the manager to try and improve the financial viability of the centre.  While that process was underway the manager resigned without giving any reason for her resignation.  It was not until sometime later that manger put in a personal grievance alleging that she had been constructively dismissed because of the pressure she felt under in relation to the poor performing business.

The Employment Relations Authority rejected the claim of constructive dismissal as the employee had failed to prove that her resignation was reasonably foreseeable and that it resulted from any improper conduct by the employer.  The ERA held that the employer was taking reasonable steps to address the financial viability of the business and was giving positive help to the manager to deal with the business’s financial woes.  At no stage during her employment had the employee raised with her employer the fact that she felt she had no choice but to resign and therefore the employer had not had any opportunity to deal with the employee’s concerns.

Alan Knowsley
Employment Lawyer Wellington

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