Employment Relations Authority rules no entitlement to backpay for former employees…

Former employees of a public entity brought a personal grievance claim of disadvantage to the Employment Relations Authority for not receiving backpay under their collective agreement.

The employer and the union had reached agreement to increase base wage rates for the employees under their collective agreement. The new term of the collective agreement included back payments for employees. This was due to the employer accepting the scope of the employee roles were incorrect and that they should be compensated for the time they took on more tasks. 

The former employees claimed they should also be entitled to these back payments even though they were not employed at the time the collective agreement was bargained and changed. They argued that it was the extreme physical and emotional toll of their incorrectly scoped roles and the protracted nature of the bargaining which made them resign.

The Authority declined the former employees’ claim. Under our employment law, a disadvantage grievance can only arise if the disadvantage occurred during employment.

The Authority stated that the payment of backpay for the increase in base rate was not a term of their employment when the employees resigned. Therefore, no disadvantage grievance based on disparity could arise because the employment relationship had already ended before the alleged disadvantage occurred.

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