Court rules employee's resignation was constructive dismissal

THE Labour Court, sitting at the Western Cape High Court, has overturned an arbitrator's decision and ruled in favour of an employee who resigned due to “intolerable working conditions”.

- CHEVON BOOYSEN

The court awarded the former employee of a Gauteng-based debt collection company compensation exceeding R310,000, finding that the employer's actions — including abruptly terminating remote work arrangements and mishandling her medical leave constituted constructive dismissal.

The Labour Court found that the commissioner's award which stated it was not constructive dismissal - could not stand, set the arbitration award aside, and further ordered that the Gauteng-based debt collection company for which the woman worked, to compensate her with the total amount of R310,571.19.

During the 2020 lockdown, the employee requested remote work from Cape Town due to her son's acceptance at a prestigious school.

The company agreed to her request, but a dispute arose regarding the permanency of her move.

The employee claimed she was allowed to permanently relocate to Cape Town due to her circumstances, but her employer viewed it as a temporary arrangement subject to operational needs.