Claim for denied contractual benefit of final week’s pay upheld

Details  Created: 03 June 2020

The Commission has upheld a claim for denied contractual benefit by an employee of a cabinet making business for his final week’s pay prior to the termination of his employment.

The applicant gave the respondent notice of termination of his employment. The applicant claimed that he performed work during his final week of employment on behalf of the business and should be paid for it before his resignation.

The respondent maintained that the applicant still had some of the respondent’s property in his possession, including a computer hard drive which contains business records.

It was also noted that the applicant was trying to finalise a kitchen job for a customer before his resignation, who had withheld payment because of concerns of the quality of the job performed.

Senior Commissioner Kenner found that it was clear during the course of the hearing that the reason the respondent had refused to pay the applicant for his final week of work with business, was the respondent’s opinion that the applicant retained in his possession the computer hard drive.

Kenner SC found, that it was not open to the respondent to refuse to pay the applicant’s wage for his last week of employment because there was a dispute with the customer in relation to work performed, and because the applicant had allegedly failed to return some computer equipment.

Kenner SC determined that the question of rectification of works and recovery of property of the business was a separate question to the applicant’s entitlement to be paid under his contract of employment.

The Commissioner upheld the application and ordered payment of the applicant’s final week’s pay.

The decision can be read here.