Easling v Mahoney Insurance Brokers Pty Ltd No. SCGRG-00-245

(2001) 78 SASR 489; [2001] SASC 22

Supreme Court of South Australia

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Interrogate

Catchwords

1. Employment Law
2. › Termination of employment
3. › Constructive dismissal
4. › Whether employer's conduct calculated or likely to destroy relationship of confidence and trust
5. › Whether unilateral change in duties amounted to repudiation
6. › Whether employee's willingness to accept changes negated claim of constructive dismissal
1. Employment Law
2. › Contract of employment
3. › Variation of duties
4. › Distinction between variation of contract and variation in scheme of working
5. › Whether change in working arrangements within scope of original contract
6. › Whether employer entitled to adjust duties in response to changed business conditions
1. Employment Law
2. › Termination of employment
3. › Condonation and waiver
4. › Whether employer's continued employment after knowledge of alleged misconduct precluded later reliance on that misconduct as ground for termination
1. Contract
2. › Repudiation
3. › Acceptance of repudiation
4. › Whether employee's election to continue contract after alleged constructive dismissal precluded later reliance on earlier breach

Quick Take

An employer may adjust working arrangements and duties within the scope of the original contract of employment without those changes constituting a variation of the contract or constructive dismissal. The distinction between a variation of contract and a variation in the scheme of working is critical. Where an employee returns to work and treats the contract as continuing after an alleged constructive dismissal, the employee cannot later rely on those earlier events as the basis for termination. Where an employer is negotiating proposed changes and the employee has expressed willingness to accept them, the changes have not been 'imposed' so as to constitute repudiation, even if the changes would be substantial if unilaterally imposed.