When the employment relationship ends before the resignation letter arrives
Not paying wages can terminate an employment contract and expose employers to unfair dismissal claims, a Fair Work Commission decision has confirmed.
In a ruling handed down on 13 March 2026, Deputy President Roberts of the Fair Work Commission dismissed an unfair dismissal application brought by Mr. Timothy Ayres against his former employer, Reed Mining Services Pty Ltd. While the application did not ultimately succeed, the legal reasoning carries clear implications for HR and payroll professionals.
Ayres alleged he was constructively dismissed on 1 September 2025, claiming he was forced to resign after the company persistently failed to pay his wages, with a formal resignation submitted on 3 September 2025. He filed his unfair dismissal application on 17 September 2025. Weeks later, Reed Mining Services was ordered by the Federal Court to be wound up in insolvency on 1 October 2025, following proceedings brought by the Deputy Commissioner for Taxation. The liquidators advised the Commission that no dividend was expected for employee creditors and that outstanding superannuation contributions exceeded $800,000.
The wage dispute covered the period from September 2024 to 29 January 2025. Ayres issued two formal letters of demand, the first dated 25 February 2025 claiming $15,448.15 in unpaid wages, and a second on 17 July 2025 covering the same period.
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