UNFAIR DISMISSAL

Understand what Constitutes Unfair and Unlawful Dismissal

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Information on Unfair Dismissal

Making a decision to dismiss an employee can be one of the more confronting decisions faced by small and medium business owners and managers. It can feel like a double edged sword, the need to eliminate the source disruption to productivity and other employees against the risk, time and cost burden, of a dismissal related claim.

There are a number of laws that can entitle a dismissed employee to start court proceedings because of the dismissal, in Queensland they include:

 

Unfair dismissal

Part 3 – 2 of the Fair Work Act, click here to read more.

 

Application for reinstatement

Part 2 Industrial Relations Act Queensland, click here to read more.

 

General Protections

Part 3 – 1 of the Fair Work Act, click here to read more.

Part 1 Industrial Relations Act Queensland, click here to read more.

 

Unlawful Termination

Part 6 – 4 of the Fair Work Act, click here to read more.

 

Whistleblower protections

Part 9.4AAA Corporations Act, click here to read more.

 

Discriminatory conduct

Part 6 Work Health & Safety Act Queensland, click here to read more.

 

The central focus of each Dismissal related claim is that of the decision maker and their reasons for making the decision to dismiss an employee. For example, in a general protections application it can be alleged that the decision maker reasons for dismissing an employee was because the employee made a workers compensation claim, in the case of a whistleblower it will be alleged that the dismissed employee was dismissed because they made a protected disclosure and in the case on work health and safety it can be alleged that the employee was dismissed because they raised concerns about workers safety.

Irrespective of the employer’s policies and procedures, written or unwritten, it will be the decision maker or decision maker’s reasoning and reasons that will be subject to scrutiny. Effective policies and procedures are an important, the effectiveness of policies procedures is reliant upon:

  • Implementation;
  • have the policies and procedures been applied fairly to all employees;
  • do the procedures capture the decision makers reasons;
  • do the policies and procedures allow for and record objections and competing views;
  • are there policies and procedures for the management of employees complaints and objections.

An informed decision maker should be mindful of the circumstances within which a decision to dismiss an employee may not only expose the employer to an unfair dismissal claim but also to general protections claims, whistleblower claims and claims of discriminatory conduct.

Click here for a link to an online version of the Fair Work Act.

When reference is made to parts of the Act, those references are known as sections.

A section is the blue number that appears on the left hand side and in sequential order.

The sections that deal with unfair dismissals begin at section 379 of the Fair Work Act and go through to section 405 of the Fair Work Act.

This is a link to the Fair Work Commission unfair dismissals benchbook (Benchbook).

The Benchbook provides more detailed information in all matters relating to unfair dismissals.

When reference is made to parts of the Act, those references are known as sections.  

A section is the blue number that appears on the left hand side and in sequential order. 

The sections that deal with unfair dismissals begin at section 379 of the Fair Work Act and go through to section 405 of the Fair Work Act.   

This is a link to the Fair Work Commission unfair dismissals benchbook (Benchbook). 

https://www.fwc.gov.au/benchbook/unfair-dismissals-benchbook

The Benchbook provides more detailed information in all matters relating to unfair dismissals.

Who can make an Unfair Dismissal application?

Section 382 of the Fair Work Act provides for a person to be protected from unfair dismissal and allows a person to make an unfair dismissal application. To be protected from unfair dismissal, a person must:
  1. Be an employee
  2. As at 1 May 2023, be employed:
    1. for no less than 12 months for a small business
    2. or for a minimum of 12 months for all other businesses
  3. Be covered by:
    1. a Modern Award
    2. an Enterprise Agreement; and/or
    3. as at 1 May 2023, have earned less than the high income threshold of $162,000.

What is Unfair Dismissal?

Section 385 of the Fair Work Act provides that a person will have been unfairly dismissed if the Fair Work Commission is satisfied that:

 

  1. The person was dismissed
  2. The dismissal was harsh, unjust or unreasonable
  3. The dismissal was not consistent with the Small Business Fair Dismissal Code 2011 and/or
  4. The dismissal was not a genuine redundancy.

Was the person dismissed?

A person who voluntarily [not forced] resigns or abandons their employment will not have been dismissed and therefore could not have been unfairly dismissed.

In the matter of Rebecca Wilson v St George Aboriginal Housing Company Limited & Adam Osborne [2021] FWC 6080, the employer made a jurisdictional objection that they had not dismissed the employee, Ms Wilson, and that her departure was explainable by her decision to resign her employment. The Applicant alleged that after having made a complaint that she had been sexually assaulted by a senior manager, she was told that her job would be safe and, that she did not have to return to work until such time as the senior manager had left the organisation. The employer insisted that the Applicant had voluntarily prepared a resignation letter and that the employer had accepted that letter as an expression by Ms Wilson of her intention to end her employment. The Fair Work Commission accepted the Applicant’s evidence that was she was directed to write the letter and for this reason, she had not resigned from her employment but rather that her departure from the organisation was attributable to the employer’s conduct and, not Ms Wilson’s.

In the matter of Amanda Katherine Gimbert v TG Ice Cream Shack Pty Ltd [2022] FWC 2521, the employer insisted that they were entitled to dismiss the Applicant, Ms Gimbert, with one hour’s notice because she was a casual employee. The Fair Work Commission did not challenge and employers entitlement to dismiss a casual employee with one hours notice, however, the Fair Work Commission remained entitled to determine if the dismissal was unfair and that just becasue Ms Gimbert was a casual employee did not mean that the employer had a valid reason for dismissing Ms Gimbert. 

When does a dismissal take effect?

Section 117 of the Fair Work Act requires, with exceptions, that an employee must be given written notice of their dismissal on the date that they are dismissed. 

The requirement at section 117 prevents an employer from giving notice to the dismissed employee after the date depicted in the written notice as this would deprive the dismissed employee of the full benefit of the 21 days available to them to lodge an unfair dismissal application with the Fair Work Commission.    

The criteria at section 387(b) and section 387(c) build on the requirement at section 117 of the Fair Work Act and whether the employee was given notice of the reason for the dismissal, that is prior to the decision being made to dismiss the employee and whether the employee had the opportunity to respond to the reason for the dismissal before the decision to dismiss was made.

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What is a jurisdictional objection?

A jurisdictional objection can be made in response to an unfair dismissal application when:

  1. An application has been made by a person who is not classified as a person protected from unfair dismissal;
  2. The application has not been lodged with the Fair Work Commission within 21 days of the dismissal; and/or
  3. The dismissal was by way of a genuine redundancy.

When is a person not protected from unfair dismissal?

A person who is not an employee of the named Respondent employer is not a person protected from unfair dismissal and is unable to make an unfair dismissal application.

When is a person not an employee?

Often Employees are given contracts by employers as a means of avoiding certain taxes and their responsibility for employee entitlements like:

  • Minimum Award Wages
  • Super Annuation
  • Leave Entitlements

The most common jurisdictional objection in respect of whether a person was an employee is made when it is alleged by the employer that that the person was a contractor and not an employee. 

To determine whether a person is an employee or contractor, the Fair Work Commission will give consideration to the how the person performs their work detailed as follows:

Contractor

A contractor is similar to a tradesman who carries out their work in a manner determined by them (ie. repairing leaking pipes).

A contractor is able to offer their services to anyone.

A contractor uses their own tools or equipment.

A contractor can be terminated for breach.

A contractor wears their own uniform bearing logos of their business.

A contractor is responsible for their own tax.

A contractor requests payment by way of a tax invoice.

A contractor has no entitlement to National Employment Standards, benefits under Awards or Enterprise Agreements.

A contractor’s efforts are only for the creation of goodwill for them.

Employee

An employer is entitled to give directions as to how the employee performs their work.

The employer will usually insist that employees offers work exclusively for the employer and not to the employer’s competitors.

An employer will provide or will make available all tools, equipment and/or devices that an employee needs to perform their duties.

An employer is entitled to stand down, suspend or dismiss an employee.

An employer can direct employees to wear uniforms that bears the employer’s logos, colours or designs to promote the employer’s business.

An employer is required to pay withholding tax to the Australia Taxation Office on account of the wages or salary paid to an employee.

An employee is paid wages or a salary.

An employee is entitled to the benefit of the National Employment Standards, Award rates of pay and Award benefits.

The benefit of an employer’s efforts is exclusively for the employer.

The matter of Gascoyne v Marvelle Tiling [2014] FWC 8398 is a demonstration of the risks to an employer when they agree to treat an employee as a contractor. The Applicant, Mr Gascoyne asked Mr Clifford, the owner of Marvelle Tiling, to pay him as a contractor. Mr Gascoyne’s motivation for the request was that the sum paid by Marvelle Tiling for his services would be greater because those payments would not be reduced on account of withholding tax or superannuation. Mr Clifford agreed to Mr Gascoyne’s request.  

The arrangement remained the same until Mr Gascoyne was advised by his accountant that Mr Clifford ought to have paid Mr Gascoyne an employer superannuation contribution. Mr Clifford refused Mr Gascoyne’s requests for Marvell Tiling to pay Mr Gascoyne’s superannuation contributions. Mr Clifford’s explanation was that because Mr Gascoyne was a contractor and not an employee, meant that Mr Clifford did not have to pay employer superannuation contributions. 

Mr Clifford made a jurisdictional objection to Mr Gascoyne’s unfair dismissal application on the grounds that Mr Gascoyne was not an employee because he was an independent contract. 

Commissioner Spencer of the Fair Work Commission found that Mr Gascoyne was a contractor and therefore not a person protected from unfair dismissal for the following reasons:

  • in respect of control, Mr Clifford provided Mr Gascoyne with a location and scope of work, rarely exercising control over how Mr Gascoyne performed his duties;
  • Mr Clifford did not withhold tax or pay superannuation on account of Mr Gascoyne;
  • Mr Gascoyne had an Australian Business Number and submitted tax invoices to Mr Clifford;
  • whilst Mr Clifford gave Mr Gascoyne shirts bearing the logo of Marvelle Tiling, Mr Gascoyne was not required to wear those shirts;
  • Mr Gascoyne used his own tools and equipment; and
  • Mr Gascoyne did not create or contribute to the goodwill of Marvelle Tiling.

In the recent High Court of Australia (High Court) matter of Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1, the High Court has said that in determining whether the Applicant, Mr McCourt, was an employee or a contractor, the question was determined by an examination of the terms set out in the written contract and whether those terms reveal an employment or contractor relationship. 

The High Court determined that despite the parties using the label “contractor”, the assessment of the terms of the contract was that of an employment relationship. Mr McCourt’s claim was not made on the grounds that he was unfairly dismissed, but rather that the employer failed to pay him and give him the benefit of entitlements under an Award and the Act and not whether he was a person protected from dismissal. 

Common Jurisdictional Objections

Application not made within 21 days of the dismissal   

The most common jurisdictional objection in response to an unfair dismissal application is made when an application has not been filed within 21 days from the date the dismissal took effect. Unless there are exceptional circumstances, the Fair Work Commission can dismiss an unfair dismissal application which has not been made within 21 days from the date of dismissal taking effect. Exceptional circumstances impose a high standard that exclude explanations that include the Applicant did not know of the time limit or that they were generally occupied within the 21 days and couldn’t get to it.     The Fair Work Commission will not accept an unfair dismissal application that has been lodged outside the 21 day limit especially: 

  • if the Applicant did not know of 21 day time limit;
  • if the Applicant did not get to it in time for any reason that was not exceptional; and/or 
  • if the delay was because the Applicant suffered the usual distress and disappointment associated with a dismissal. 

In the matter of Michael Scott v Steritech Pty Ltd t/a Steritech [2019] FWC 2970, the employer raised a jurisdictional objection that Mr Scott’s general protections dismissal application was lodged two days outside the 21 day limit which also applies equally to any general protections dismissal application. Sections 366 and 394 of the Fair Work Act are identical and respond to the criteria required for whether or not an extension of time ought to be granted.     

For an extension of time to be granted, Mr Scott was required to demonstrate that the cause of the delay was attributable to exceptional circumstances including how those exceptional circumstances effected Mr Scott for the entire duration of the 21 day period. Mr Scott’s explanation was that he had suffered a major depressive episode that resulted in his hospitalisation for approximately 2 months. 

Deputy President Sams of the Fair Work Commission observed that Mr Scott’s hospitalisation was the most severe manifestation of a dismissed employee progressively reaching a point of almost total despair. Deputy President Sams was also persuaded that:

(a) representative error being Mr Scott’s lawyer’s failure to have filed the application within 21 days contributed to the delay; 

(b) despite Mr Scott’s condition, he had sought out and attended a solicitor’s appointment within the 21 days illustrating that Mr Scott had not treated the matter with indifference; 

(c) an extension of time of 2 days was not prejudicial to the employer; and

(d) Mr Scott’s substantive general protections case, which applies equally to the merits of an unfair dismissal case, was not without merit.

Deputy President Sams found that exceptional circumstances did exist and Mr Scott was permitted to file his application 2 days after the 21 day time limit. 

When is a dismissal a genuine redundancy?

The criteria for determining whether a redundancy was a genuine redundancy is set out at section 389 of the Fair Work Act. In circumstances where a redundancy has been cited as the reason for a dismissal can be interpreted as an unfair dismissal if the reasoning for the dismissal was not explained as genuine redundancy, they are:

  • the employer no longer requires any person to perform the employees role;
  • the employer fulfilled its consultation obligations under the prevailing modern Award;
  • whether it was reasonable for the employer to have redeployed the employee. 

In Khliustova v Isoton Pty Ltd [2023] FWC 658 Fair Work Commissioner Platt found that a dismissal was not a genuine redundancy because the employer had not fulfilled its consultation obligations under the prevailing modern Award. 

In the case of Clint Coorey v Australia Tile Wholesale Pty Ltd [2023] FWC 927 Fair Work Commissioner McKinnon accepted the employees evidence that it was responsible for the employer to have redeployed the employee to another position and for this reason the dismissal was not a genuine redundancy.

What does it mean to be an Award covered employee?

An Award covered employee is an employee whose employment is covered by a Modern Award. Copies of all modern Awards can be accessed by way of the following link. The effect of an employee being an Award covered employee is that:
  1. They are entitled to be paid no less than the rates of pay prescribed by the Award
  2. They are entitled to the benefits under the Award; and
  3. In accordance with section 382(b)(i) of the Act, they are a person protected from unfair dismissal.
The rationale of this requirement is that a person protected from unfair dismissal is not a person, who within the business, is what is commonly referred to as managerial autonomy, such as a senior manager, executive manager, chief executive officer or business owner. That is, the employee did not and was not authorised to make important decisions to do with the business. An employee covered by a Modern Award or Enterprise Agreement will fall within one of the classifications set out in the Modern Award. The classifications are usually found as a schedule to the Award and they set out the different rates of pay which are typically determined based on an employee’s experience, qualification, management and number of persons managed or nature of duty performed. The more specialized an employee is, the higher the classification and the higher the minimum rate of pay. Not every industry is covered by a Modern Award and not every workplace is covered by an Enterprise Agreement. A person who is not covered by a Modern Award or Enterprise Agreement may still be a person protected from unfair dismissal if their annual earnings are less than the high-income threshold.

In the matter of Hayden Thomas v Hanseatic Marine Engineering Pty Ltd T/A Silver Yachts [2019] FWC 1, the employer made a jurisdictional objection on the grounds that the Applicant, Mr Thomas, was not a person protected from unfair dismissal because Mr Thomas was not an Award covered employee. The employer argued that Mr Thomas was not an Award covered employee because: 

  •  Mr Thomas’ role was well above of the Award classifications;
  •  Mr Thomas was paid well above the Award minimum rates of pay;
  •  Mr Thomas did exercise managerial distraction by hiring and firing;
  •  Mr Thomas’ qualifications were in excess of those contemplated under the Award; and
  •  Mr Thomas’ employment contract had the hallmarks of a managerial employment contract. 

To determine if Mr Thomas was an Award covered employee, and therefore a person protected from unfair dismissal, Commissioner Cribb of the Fair Work Commission applied what is described as the “principal purpose test” which involved an examination of the actual work performance by Mr Thomas. This test was to determine if the nature of the duties performed by Mr Thomas fell within one of the Award classifications. 

In applying the principal purpose test, Commissioner Cribb went beyond organisational charts, descriptions and labels that attributed to Mr Thomas and identified the actual work performed by Mr Thomas against the criteria of the Award classifications. The principal purpose test found that Mr Thomas was an Award covered employee.

When is a dismissal harsh, unjust or unreasonable?

Section 387 of the Fair Work Act sets out the considerations a Member of the Fair Work Commission must give in their determination as to whether a dismissal was hard, unjust or unreasonable. Much will turn in the facts of each case and therefore, the findings of fact made by the respective Member including their particular views of the facts and whether those facts persuade the Member reaching a decision that the dismissal was harsh, unjust or unreasonable will only be reached upon applying the facts to each criterion outlined in section 387.

 

The criteria in section 387 sets out, in easy to understand language, the criteria or matters that the Fair Work Commission takes into account to determine whether a dismissal was harsh, unjust or unreasonable. This criterion includes:

  1. Whether there was a valid reason for the dismissal
  2. Was the person notified of the reason
  3. Whether the person was given the opportunity to respond (to the accusation) if the accusations related to the person’s conduct or performance
  4. Was the person given (or not given) the opportunity to have a support person present;
  5. If the reason for dismissal was about unsatisfactory performance including whether the person had been given a warning (about their performance) prior to being dismissed;
  6. The size of the employer’s enterprise
  7. Was the employer disadvantaged because they did not have the benefit of human resource expertise; and/or
  8. Any other relevant matters.
Validity of the reason for dismissal

The test to determine whether there is a valid reason for dismissal will be “sound, defensible or well founded. A reason that is “capricious, fanciful spiteful or prejudiced” cannot be a valid reason. 

In the matter of Byrne v Australian Airlines Ltd [1995] HCA 24, the High Court of Australia explained:

“It may be that the termination is harsh but not unjust or unreasonable, unjust but not harsh or unreasonable, or unreasonable but not harsh or unjust. In many cases the concepts will overlap. Thus, the one termination of employment may be unjust because the employee was not guilty of the misconduct on which the employer acted, may be unreasonable because it was decided upon inferences which could not reasonably have been drawn from the material before the employer, and may be harsh in its consequences for the personal and economic situation of the employee or because it is disproportionate to the gravity of the misconduct in respect of which the employer acted”

At a contested unfair dismissal hearing, an employer will usually be expected to give evidence as to the reasons for the dismissal. A dismissed employee will give evidence of their explanation of their dismissal and why they believe that their dismissal was unfair. It then falls to the Fair Work Commission Member to determine what are known as the factual disputes. The factual findings then determine if the reason for the dismissal was the reason alleged by the employer or if the reason for the dismissal was capricious, fanciful, spiteful or prejudiced.

In the matter of Burke v Suncorp Group Limited [2015] FWC 3357, Deputy President Asbury of the Fair Work Commission, (as she then was) in assessing the section 387 criteria, found that the employer had a valid reason to dismiss the Applicant, Mr Burke. The employer had produced significant evidence of Mr Burke’s unsatisfactory work performance over a period of 2 years. 

However, Deputy President Asbury found that Mr Burke’s dismissal was unfair. Deputy President Asbury was critical that the employer, with significant resources and human resource expertise, had failed to take the opportunity to discuss with Mr Burke his health issues and whether Mr Burke’s health issues were the cause of his performance issues. Deputy President Asbury also determined that it ought to have been apparent to the employer, even in circumstances where Mr Burke did not expressly raise his health issues, that Mr Burke’s health issues impacted upon his work performance. 

In the matter of Steve Newton v Toll Transport Pty Ltd [2021] FWCFB 3457, the Full Bench of the Fair Work Commission found that an employee who was questioned by an employer about an incident that occurred outside of work and, in his own time, had the right to not answer questions put to him by his employer about that incident. The employee, Mr Newton, had the right to refuse to answer those questions. The Full Bench observed that a dismissal for fighting was not viewed as harsh, unjust or unreasonable. The Full Bench also observed that:

  1. all of the facts ought to be taken into account including whether there was:
  1. provocation;
  2. self defence;
  3. a need to protect employees;
  4. a need to protect the record of the dismissed employee; and
  1. it was not for the Fair Work Commission to categorise cases in a particular way.

The Full Bench determined that an employer could not rely upon facts that they came to know after the dismissal as evidence of the reason for the dismissal. The question of whether there was a valid reason for the dismissal would require an evaluation of the evidence of the matters that would have been known to the decision maker at the time of the dismissal. 

In a more recent case of Diane Duncan v PKK Transport Pty Ltd ATF the PKK Family Trust T/A Ashtons Removals [2023] FWC 444, Commissioner Hunt of the Fair Work Commission observed that a vote amongst employees, to determine whether the Applicant ought to be dismissed, was disturbing and primitive. Commission Hunt also noted that, even if the Applicant’s co-workers disliked the Applicant, that was not a valid reason to dismiss the Applicant.

In the matter of Matthew Wyss v Omnigrip Direct Pty Ltd [2022] FWC 3174, a decision by the employer to dismiss the employee, Mr Wyss was, was found to be a valid reason for dismissal because:

  • Mr Wyss ignored a reasonable direction from his employer to not consume alcohol during a lunch break;
  • by ignoring the directions of his employer and consuming alcohol at the lunch break, the employee breached the employer’s drug and alcohol policy;
  • Mr Wyss allowed employees to drive company vehicles after they had also consumed alcohol;
  • Mr Wyss’s told other employees to lie about consuming alcohol at the lunch; and 
  • Mr Wyss’s conduct was willful and deliberate. 

Deputy Commissioner Colman of the Fair Work Commission also took into consideration Mr Wyss’ failure to demonstrate remorse for his conduct and he described Mr Wyss’ attempts at apologising as halfhearted and belated.

In the matter of Nicholas Bailey v Octeros Manufacturing Pty Ltd [2022] FWC 1946, the employer did not attend a hearing and did not give evidence of the reason for the dismissal. In this circumstance, the Fair Work Commission did take into account the evidence of the employee, Mr Bailey, in determining whether there was a valid reason for the dismissal.

In the matter of Gregory Brass v KDR Victoria Pty Ltd t/a Yarra Trams [2022] FWC 2527, Deputy President Colman of the Fair Work Commission found that there was not a valid reason for the dismissal of the Applicant because the conduct was not serious enough to warrant misconduct. Deputy President Colman had the benefit of CCTV evidence that depicted the alleged conduct and, was able to form a view upon his own interpretation of the employees conduct, which the employee has described as general horseplay between colleagues who share close personal friendships.  

Deputy President Colman also found that the:

  • dismissal was not a proportionate response; 
  • employer failed to act on its own disciplinary procedure; 
  • employer had an inconsistent approach to horseplay; and
  • employee had a lengthy period of service and a good record.

In the matter of Amanda Katherine Gimbert v TG Ice Cream Shack Pty Ltd [2022] FWC 2521 the employer alleged that the employee, Ms Gimbert, withdrew from shifts at late notice and this was the reasoning as to Ms Gimbert’s dismissal, However, the evidence of text messages between the employer and Ms Gimbert was showed attempts by each to find mutually convenient solutions.

In the matter of Danny Hana v Renfay Projects Pty Ltd [2022] FWC 2484, Commissioner Matheson of the Fair Work Commission found that the employer did not have a valid reason for dismissing the Applicant, Mr Hana. Commission Matheson also found that the employer’s use of terms such as “abusive”, “aggressive”, “worked up”, “rude”, “degrading” and “demanding” were not evidence that Mr Hana had conducted himself in any of these ways. Commissioner Matheson attributed the conflict between Mr Hana, and his colleagues to there being an absence of communication in relation to Mr Hana working from home. 

In the matter of Aadeela Natasha Raffie v Allied Express Transport Pty Ltd [2022] FWC 2398, the employer’s explanation for the dismissal of the employee, Ms Raffie, was that she had abandoned her employment and that the abandonment took on greater significance in light of her past absences. In having regard to all of the facts and circumstances, Deputy President Boyce of the Fair Work Commission did not accept that Ms Raffie had abandoned her employment, and that:

  •  the employer did not have a lawful entitlement to demote Ms Raffie; 
  •  Ms Raffie did not voluntarily accept the demotion; and
  •  Ms Raffie was entitled to challenge the purported demotion.

In the matter of Eric Sim v Australian Pilot Training Alliance Pty Ltd [2022] FWC 1843, Commissioner Lee of the Fair Work Commission found that the employee, Mr Sim, had caused and was responsible for an error in regard to the access to information on the employer’s application referred to as the SMART system. The employer alleged that Mr Sim’s conduct in removing a certain person’s level of access within SMART system was deliberate. Commissioner Lee found that Mr Sim’s error was not deliberate and that a genuine mistake was not a valid reason for Mr Sim’s dismissal.   

In the matter of Toni Mueller v The Real McCoy & Co T/A Snack Brands Australia [2022] FWC 1871, the employee, Mr Mueller, challenged the employer’s reasons for his dismissal being that was Mr Mueller was unable to perform the inherent requirements of his job. Deputy President Boyce identified the relevant test as the substantive position or role of the employee that must be considered and, inherent means essential requirements of employment, as opposed to those that are peripheral. In reliance of medical evidence, Deputy President Boyce found that the employer had a valid reason to dismiss Mr Mueller.

Was the person notified of the reason for the dismissal?

The person must be notified of the reason for the dismissal:


  • Before the decision to dismiss is made
  • In explicit terms; and
  • In plain and clear terms.

The notice would typically take the form of an allegation that the employee has engaged in conduct, or not, and because of that act or omission, the employer is contemplating dismissing the employee. This criterion will usually go hand in hand with the criteria in section 387(c) of the Fair Work Act addressing whether the employee was given an opportunity to respond to the allegations before the dismissal.
It falls upon the decision maker to demonstrate that the decision to dismiss was not made until after such time as the person was notified of the reason for the dismissal. There are circumstances that may warrant what is referred to as summary dismissal, which is terminating employment with immediate effect. Circumstances where summary dismissal may be appropriate include:

  1. When an employee’s conduct places them or their coworkers at risk of injury
  2. when an employee has engaged in criminal or unlawful conduct, or
  3. when an employee has engaged in conduct that has caused damage to the employer such as misusing its confidential information.

However, if summary dismissal was not warranted, the Fair Work Commission may be called upon to determine if the decision maker had made the decision to dismiss the employee before the employee was notified of the dismissal.

The matter of Central Queensland Services Pty Ltd v Tara Odgers [2020] FWCFB 304, the Full Bench of the Fair Work Commission described the employer’s obligations under section 387(c) of the Fair Work Act as:

  • taking reasonable steps to investigate allegations; and
  • providing the employee with a fair chance at responding to the allegations.

The Full Bench stated that the section 387(c) obligation does not require an employer to comply strictly with its own policies or practices but rather, whether as a matter of fact and substance, the employee was given the opportunity to respond to the allegations. The Full Bench observed that even if there had been a defect in the employer’s internal disciplinary process, that alone would not render the dismissal harsh, unjust or unreasonable.

In the matter of Steve Newton v Toll Transport Pty Ltd [2021] FWCFB 3457, the Full Bench of the Fair Work Commission held that the employer’s failure to give the employee a notice of the reason at a time prior to the dismissal could not be a neutral consideration. The Full Bench also noted that the proceedings before the Fair Work Commission could not be used as a mechanism for giving the employee notice of the reason for the dismissal.

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