Compensation awarded to employee forced to resign after employer reduced hours from 38 to 9 hours per week.

The Commission has awarded $27,098.46 as compensation to an employee, finding that the decision of the employer to reduce the employee’s hours constituted a breach of the employment contract such that the employee was entitled to consider that his employment was terminated.

Background

The applicant commenced work with the respondent on 1 July 2020 and was employed on a fulltime basis, 38 hours per week, as an Assistant Coordinator.

On 23 February 2021, the applicant was advised that his hours would be reduced from 38 to 9 hours per week.

On 23 April 2021, the applicant delivered his resignation to the respondent’s Chairperson, stating that the Chairperson’s and other committee member’s actions had caused an extremely stressful working environment.

Contentions

The applicant stated he was the target of an orchestrated and sustained conduct of harassment, undertaken to force him to resign. The applicant referred to several incidents involving senior staff of the employer.

One incident involved the Chairperson blocking the applicant from leaving the room with his arm at the office. It was then that the Chairperson informed the applicant that his job description had changed and his working hours were reduced.

 During another incident, the applicant stated that the Secretary called him ‘useless’ and ‘stupid’. The applicant’s allegations were corroborated by evidence from his supervisor.

 The employer contended that the applicant had voluntarily resigned.

Findings

The Commission found the employer unilaterally changed the applicant’s employment contract terms, reducing his working hours from 38 to 9 hours per week. The Commission found that this change breached the terms of the applicant’s employment contract and that the applicant was entitled to consider that his employment was terminated because of the employer’s conduct and actions.

The Commission noted that, in the circumstances, it was not practical to reinstate the applicant, instead awarding compensation for the loss of income he would have otherwise earned had his employment continued up to the date of the hearing.  The Commission awarded the applicant $27,098.46, being the maximum amount available under s 23A(8) of the Industrial Relations Act 1979.

The decision can be read here.