Can management conduct create conditions that force employees to quit their jobs?

The Fair Work Commission (FWC) recently dealt with a case involving a worker who claimed he was dismissed after resigning from his position as a retail salesperson. The worker argued that his resignation was forced due to conduct by his area manager that created an intolerable work environment.

The worker contended that his area manager's conduct had "effectively forced" him to resign, claiming he had "no reasonable choice but to leave" due to an uncomfortable and difficult work environment.

The employer objected on jurisdictional grounds, arguing the worker was not dismissed as required under the Fair Work Act 2009, but had voluntarily resigned.

This case highlights the distinction between voluntary resignation and constructive dismissal, examining when workplace conduct may force an employee to resign and whether such resignation constitutes dismissal under Australian employment law.

Workplace conflicts lead to forced resignation?

The worker started employment with a national retailer of bedroom products on 20 November 2024 at a newly opened store in Springvale, Victoria. The employer operates multiple retail stores selling beds and mattresses across Australia.

At the start of his employment, a store manager oversaw daily operations while an area manager was responsible for multiple locations including the Springvale store.

The worker was described as very focused on making sales and was a...

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