Constructive dismissal: Teen forced to choose between signing casual agreement or losing job

ERA: Employers actions amounted to 'repudiatory conduct'

Constructive dismissal: Teen forced to choose between signing casual agreement or losing job

A teenager has successfully claimed constructive dismissal after being pressured by her employer to sign a casual employment agreement or face losing her job.

The Employment Relations Authority (ERA) sided with a teenager who began working as a kitchenhand at Amore Italiano Ristorante, a family-run business, in late 2022.

Initially hired with the understanding that she would work regular shifts, her employment relationship soon soured as the Kotevski family, owners of the restaurant, began reducing her hours.

In June 2023, while the Kotevskis were overseas, they told the teen that her hours would be averaged due to the limited work available. However, there was confusion about whether this arrangement applied to kitchenhands like her.

Pressured to sign casual deal

In July 2023, Buci Limited, the company behind the restaurant, offered her a permanent part-time agreement, which she refused to sign due to concerns over outdated terms.

Shortly after, a casual employment agreement was presented to her, which she also declined. The Kotevskis insisted that she sign the agreement in order to continue working, but when she refused, they told her she could not return to work unless she signed the document.

The situation escalated in August 2023, when the teen and her stepfather visited the restaurant to discuss her hours and wages. Following a tense interaction, she was told she could not work until she signed the casual agreement.

The employer's refusal to offer her work without a signed agreement led her to believe she had been dismissed. In August 2023, her advocate submitted a grievance to the ERA, claiming that her employment had been effectively terminated.

Was it constructive dismissal?

The ERA sided with the teen, ruling that her resignation was not voluntary, but rather a direct result of the employer's actions, constituting constructive dismissal.

"Buci breached its obligations to [the teen] by refusing to offer her work unless she signed a casual agreement which it did not provide her a copy of and then purporting to give her a final warning to sign. This was repudiatory conduct."

"[The teen] was constructively dismissed by Buci. The impetus for her departure was that of Buci – it chose to give her a choice of signing the casual agreement or not working and she reacted by leaving."

As a result, the ERA awarded her $17,000 in compensation for emotional distress, along with $964.75 in lost wages and $363.20 for unpaid holiday pay.