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Davies v Oxygen Therapy Centre Hdot (Jersey) Limited: [2024] TRE 11

December 13, 2024

The claimant was employed by the respondent, a registered charity, as a Development Manager from March 2022 to 29th December 2023.  The claimant worked 10 hours per week for a weekly wage of £155.00, payable at the end of each month. The role initially included both operational and fundraising duties but eventually shifted solely to fundraising.  Due to the charity’s financial difficulties, wages were not paid as scheduled on 29th December 2023, leading the claimant to resign that same day.

The claimant filed for constructive unfair dismissal and wrongful dismissal, asserting that they had been forced to resign due to the respondent’s failure to pay wages and a lack of support in their role.  Specifically, their grievance was based on (1) unpaid wages for December, and (2) failure by the charity to address their concerns.  Following procedural hearings, the sole issue before the tribunal was the failure to pay the claimant’s salary for December 2023.

The respondent, represented by its Governor argued that the delay in payment was due to the charity’s poor financial state, compounded by practical difficulties such as unavailability of authorised signatories.  It was further argued that the claimant was responsible for the charity’s lack of income, as they had failed to apply for grants or deliver successful fundraising results.  However, the claimant successfully refuted these claims with evidence of their efforts to seek support at board level, demonstrating that the charity’s financial difficulties were beyond their control.

The tribunal determined that the non-payment of wages constituted a repudiatory breach of contract, making the claimant’s resignation on 29th December 2023 an instance of constructive unfair dismissal.  The breach of contract was fundamental, as timely payment of wages is an express term.  The tribunal also found that the claimant had acted reasonably in their efforts to mitigate their loss after dismissal.

The tribunal awarded the claimant compensation under two distinct claims:

Constructive Unfair Dismissal: The tribunal awarded 7 weeks’ wages (£1,085) in recognition of the late payment, distinguishing the case from situations where wages were never paid.

Wrongful Dismissal: Based on the contract’s four-week notice period, the tribunal awarded an additional £620 for failure to provide notice, bringing the total compensation to £1,705.

The tribunal found no justification for reducing the award, rejecting the respondent’s assertion that the claimant had contributed to the charity’s financial issues.

The case underscored that regardless of the charity’s financial challenges, the failure to honour the employment contract justified the claimant’s constructive dismissal.

 

Full Judgement Here

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