Court says employer's work arrangement left employee 'vulnerable'
A dairy milker has been awarded more than $50,000 after the Employment Relations Authority (ERA) ruled that she was constructively dismissed from her previous job.
Kimberley Price worked at a dairy farm owned by Pinevale Farms Limited starting the middle of January to October 1, 2021.
The basis of the initial engagement was "purportedly" a casual relief milker, where she would receive $70 net for each milking, and a "pay as you go" holiday component of eight per cent.
Conflicting claims
According to the ERA document, the terms of Price's engagement with the company were not the subject of a written employment agreement.
Mark Hurst, sole director of the company, said he offered Price one, but she did not sign it.
This is in contrast of what Price claims, who said Hurst did not provide her with an employment contract or keep wage and time and holidays and leave accords. She also accused her employer of not getting compensated in accordance with minimum standards, including not getting paid minimum wages for hours worked, holiday obligations, as well as final pay.
Hurst defended that he did not personally employ Price, denied the accusation of "unreasonable treatment," and accused the dairy worker of engaging in confrontational behaviour.
However, the director admitted that he did not keep wage and time and holidays and leave records and that Price's wages were paid by his accountant.
On Price's departure, both the worker and the employer both had conflicting claims on whether Price resigned or abandoned her role.
Price said she left a resignation letter on September 25, 2021, at work. However, the director initially claimed that Price just stopped reporting to work after September 25, adding that he found her resignation letter about a week later.
The investigation showed, however, that he was aware that Price worked out her notice period up to and including October 1 and left the provided accommodation on October 3.
"Mr Hurst indicated he did not pay Ms Price for the one-week notice worked, saying he withheld payment because the vacated accommodation was untidy. Mr Hurst says he now realises that holiday pay was owed but has to date, not paid any," the court document said.
ERA sides with Price
In its ruling, the ERA decided that Price was "constructively dismissed" by her employer. According to the ERA, Price was a "permanent employee with full-time hours fluctuating to suit Pinevale's seasonal requirements."
"What reinforces this view was Mr Hurst did not engage another permanent milker and Ms Price's work was ongoing and involved other farm tasks," the ERA said.
The ruling also said that while Hurst believes he provided Price with a fair employment package, which included free accommodation, his approach had "no regard to legal compliance obligations."
"The 'work bargain' he struck with Ms Price was advantageous to Mr Hurst and provided Ms Price with few key minimum entitlements. Ms Price was vulnerable and a bargaining imbalance existed," the court said.
It said that Price's resignation was "entirely foreseeable" given that Hurst had many opportunities to rectify her concerns, saying: "Ms Price was constructively dismissed."
Price now receives $20,000 in compensation, $25,000 in unpaid wages, holiday pay of $8,287, and $2,160 for the holidays she worked.
