Medium2 marksMultiple Choice
Syllabus C: Employment lawSection BCorporate and Business Law

ACCA · Question 50 · Syllabus C: Employment law

Scenario: GreenAcres Farms engages tractor drivers. Silas works exclusively for GreenAcres, uses their tractor, and is paid a fixed weekly wage, but his contract says 'Independent Contractor'. GreenAcres recently told Silas he must work 20 extra hours a week without pay, prompting Silas to resign immediately. GreenAcres also dismissed another worker, Maya, because she joined a trade union.

Assuming Silas is an employee, what legal claim arises from his resignation?

Answer options:

A.

Wrongful dismissal, as he was not given notice.

B.

Constructive unfair dismissal, as the employer fundamentally breached the contract, causing him to resign.

C.

Redundancy, as his original role no longer exists.

D.

No claim, as he chose to resign voluntarily.

How to approach this question

Identify the legal consequence of an employer forcing an employee to resign through unreasonable demands.

Full Answer

B.Constructive unfair dismissal, as the employer fundamentally breached the contract, causing him to resign.✓ Correct
Constructive dismissal occurs when an employee resigns in response to a repudiatory breach of contract by the employer. Demanding a massive increase in hours for no extra pay is a fundamental breach of the implied term of mutual trust and confidence, and express terms regarding pay/hours. Silas can claim constructive unfair dismissal.

Common mistakes

Assuming that because the employee said 'I quit', they have no legal recourse.

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