Dispute centers on whether employee had choice but to quit when wages stopped completely
The Fair Work Commission (FWC) recently dealt with a general protections dispute involving a worker who claimed he was dismissed when forced to resign after his employer failed to pay his salary for eight months.
The worker argued that he had no choice but to resign due to the company's conduct, while the employer maintained that the resignation was voluntary.
The case turned on whether the worker was genuinely forced to resign because of his employer's actions, or whether he simply chose to leave of his own accord.
The worker claimed that prolonged non-payment of wages left him with no realistic alternative but to end his employment, while the company argued there was an agreement in place that justified the delayed payments.
The worker was employed as global head of sales from February 2021 until March 2025, working for an Australian start-up company.
The employment contract required payment of a base annual salary of CHF130,000 plus commission, with salary to be paid monthly by the 15th of the following month. However, the worker experienced regular delays in payment throughout his employment.
The employer had difficulty meeting its debts, with both the chief financial officer and CEO deferring their own salaries in early 2024. The most significant issue arose when the worker was not paid any salary for approximately eight months...
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