An employee was harassed at the workplace and informed the employer. The employer did not act to stop the harassment and the employee decided to resign.
The Supreme Court held that although the employee resigned she is entitled to severance pay under law. It should be examined whether the sexual harassment arose in circumstances under which labor relations do not require the employee to continue the employment. Thus, there is a need to meet two conditions: the employee must notify the employer about the harassment and move the employer to change and correct the deterioration of terms, unless it is clear that the employer is unable to do so, and to show a direct connection between the resignation and deterioration in the terms of employment. Here, all the conditions were met and the result was that the resignation was deemed a dismissal entitling severance pay in a manner reflecting the severity of sexual harassment in the workplace.