What was it about?
Constructive unfair dismissal, breach of contract, non-payment of wages, failure to provide written statement of employment, COVID payroll co-funding
What was the outcome?
The Tribunal did not identify a breach of contact therefore there was no constructive unfair dismissal. However the Tribunal did order payment for 2 days plus compensation for failure to provide a written statement of employment terms (contract of employment).
What were the facts?
The Claimant resigned on 15 May 2020 and claimed that they had been constructively dismissed. They alleged that this was due to not receiving wages from March 2020 until a one-off payment in May 2020. The claim was that this created a fundamental breach of contract – expressly in relation to the payment of wages and impliedly due to the perceived lost of trust and confidence in their employer.
The Respondent’s view was that the Claimant had resigned without notice and had agreed to the pay reduction.
The Respondent was informed that they could not make a claim under the payroll co-funding scheme for April wages until May, and the Claimant was informed of this and told there would be a delay. The alternative was for the business to close.
When the co-funding payment was received, this was paid to the Claimant on the same day.
The Tribunal determined that there had been an agreement to reduce pay. The Tribunal noted that the Respondent had paid the Claimant the monies on the day they were received and this appeared to be in compliance with the agreement between employer and employee.
As such, the Tribunal determined that there was no breach of contract and therefore no constructive dismissal.
However, the Claimant did receive monies in respect of two days work in April and for the Respondent’s failure to provide a written contract of employment.
