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Bank freezes employer’s accounts…
An employee has had her personal grievance for constructive dismissal upheld by the Employment Relations Authority.
Her employer got into financial difficulties and the bank froze its accounts and therefore wages could not be paid.
The employee refused to continue working when she was not being paid, and put in her resignation. The ERA held that was a constructive dismissal as the employer’s failure to pay wages was a fundamental breach of its obligations.
The employee was awarded four weeks pay for her notice period, plus the shortfall between her salary and the lower pay in her new job for three months, as well as her unpaid salary up to her resignation, and $3,500 compensation.
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