Accounts clerk accused of being drain on employer's life force

23 Nov 06

Ms Chin was employed as an accounts clerk by Mr Yong of Yong & Co Chartered Accountants. In 2005, unbeknownst to Ms Chin, Mr Yong loaned $50,000 to her husband. Ms Chin found out for the first time in mid-2005 when Mr Yong's wife told Ms Chin that her husband had failed to repay the loan. In August 2005 Mr Chin was declared bankrupt.

Mr Yong converted to Scientology. He engaged a consultant named Mr Wenborn to restructure his business. In accordance with his new beliefs Mr Yong sought to rid his business of any "unethical and unscrupulous staff". Mr Wenborn wrote to Ms Chin about the debt owed by her husband stating that it was "a moral issue" for her and that she should find a "solution" to the problem. Ms Chin responded that she was not responsible for her husband's debts, however Mr Wenborn continued to press her for a "resolution". Ms Chin resigned, claiming a constructive dismissal.

The Employment Relations Authority accepted that Mr Wenborn was genuinely seeking to reduce Mr Yong's stress and the drain on his "life force", but it was wrong for Mr Yong to try and hold Ms Chin accountable for debts owed by her husband. The Authority ruled Mr Yong was in breach of his duty as an employer and that Ms Chin was constructively dismissed. It awarded Ms Chin 5 weeks lost wages, $5,000 distress damages, outstanding holiday pay and interest.