[2025] FWC 3941
General information, not legal advice.
Fair Work Commission
2025-12-24
Original judgment source is linked above.
s.394 - Unfair dismissal
Application of an unfair dismissal remedy - determination of remedy - Applicant to be reinstated by appointment to another position - Order for continuity of employment - Order for lost remuneration.
(1) An order for a person's reinstatement must be an order that the person's employer at the time of the dismissal reinstate the person by:
(a) reappointing the person to the position in which the person was employed immediately before the dismissal; or
(b) appointing the person to another position on terms and conditions no less favourable than those on which the person was employed immediately before the dismissal.
(a) the position in which the person was employed immediately before the dismissal is no longer a position with the person's employer at the time of the dismissal; and
(b) that position, or an equivalent position, is a position with an associated entity of the employer;
the order under subsection (1) may be an order to the associated entity to:
(c) appoint the person to the position in which the person was employed immediately before the dismissal; or
(d) appoint the person to another position on terms and conditions no less favourable than those on which the person was employed immediately before the dismissal.
(2) If the FWC makes an order under subsection (1) and considers it appropriate to do so, the FWC may also make any order that the FWC considers appropriate to maintain the following:
(b) the period of the person's continuous service with the employer, or (if subsection (1A) applies) the associated entity.
(3) If the FWC makes an order under subsection (1) and considers it appropriate to do so, the FWC may also make any order that the FWC considers appropriate to cause the employer to pay to the person an amount for the remuneration lost, or likely to have been lost, by the person because of the dismissal.
(4) In determining an amount for the purposes of an order under subsection (3), the FWC must take into account:
(a) the amount of any remuneration earned by the person from employment or other work during the period between the dismissal and the making of the order for reinstatement; and
(b) the amount of any remuneration reasonably likely to be so earned by the person during the period between the making of the order for reinstatement and the actual reinstatement."
(1) An order for the payment of compensation to a person must be an order that the person's employer at the time of the dismissal pay compensation to the person in lieu of reinstatement.
(2) In determining an amount for the purposes of an order under subsection (1), the FWC must take into account all the circumstances of the case including:
(a) the effect of the order on the viability of the employer's enterprise; and
(b) the length of the person's service with the employer; and
(c) the remuneration that the person would have received, or would have been likely to receive, if the person had not been dismissed; and
(d) the efforts of the person (if any) to mitigate the loss suffered by the person because of the dismissal; and
(e) the amount of any remuneration earned by the person from employment or other work during the period between the dismissal and the making of the order for compensation; and
(f) the amount of any income reasonably likely to be so earned by the person during the period between the making of the order for compensation and the actual compensation; and
(g) any other matter that the FWC considers relevant.
(3) If the FWC is satisfied that misconduct of a person contributed to the employer's decision to dismiss the person, the FWC must reduce the amount it would otherwise order under subsection (1) by an appropriate amount on account of the misconduct.
(4) The amount ordered by the FWC to be paid to a person under subsection (1) must not include a component by way of compensation for shock, distress or humiliation, or other analogous hurt, caused to the person by the manner of the person's dismissal.
(5) The amount ordered by the FWC to be paid to a person under subsection (1) must not exceed the lesser of:
(a) the amount worked out under subsection (6); and
(b) half the amount of the high income threshold immediately before the dismissal.
(6) The amount is the total of the following amounts:
(whichever is higher) for any period of employment with the employer during the 26 weeks immediately before the dismissal; and
(b) if the employee was on leave without pay or without full pay while so employed during any part of that period - the amount of remuneration taken to have been received by the employee for the period of leave in accordance with the regulations."
(a) the Applicant's former position no longer exists;
(b) there are no available alternative equivalent positions at either of the Saraji or Peak Downs Mines; and
(c) various of the Respondent's employees do not want to work with him.
"Each case must be decided on its own merits. There may be cases where any ripple on the surface of the employment relationship will destroy its viability. For example the life of the employer, or some other person or persons, might depend on the reliability of the terminated employee, and the employer has a reasonable doubt about that reliability. There may be a case where there is a question about the discretion of an employee who is required to handle highly confidential information. But those are relatively uncommon situations. In most cases, the employment relationship is capable of withstanding some friction and doubts. Trust and confidence are concepts of degree. It is rare for any human being to have total trust in another. What is important in the employment relationship is that there be sufficient trust to make the relationship viable and productive. Whether that standard is reached in any particular case must depend upon the circumstances of the particular case. And in assessing that question, it is appropriate to consider the rationality of any attitude taken by a party.
It may be difficult or embarrassing for an employer to be required to reemploy a person the employer believed to have been guilty of wrongdoing. The requirement may cause inconvenience to the employer. But if there is such a requirement, it will be because the employee's employment was earlier terminated without a valid reason or without extending procedural fairness to the employee. The problems will be of the employer's own making. If the employer is of even average fair-mindedness, they are likely to prove short lived. Problems such as this do not necessarily indicate such a loss of confidence as to make the restoration of the employment relationship impracticable."
This amount is to be paid to the Applicant within 14 days from the date of this order.
[2] OS MCAP Pty Ltd v Mr Karl Mouat [2025] FWCFB 284.
[9] Exhibit 3 Cross Examination Tender Bundle
[10] Pham v Supreme Caravans Pty Ltd [2013] FWC 4561, [19].
[12] Humphries v Buslink Vivo Pty Ltd [2015] FWC 4641, [53]
[13] Moszko v Simplot Australia Pty Ltd (2021) FWCFB 6046, [46]; Colson v Barwon Health [2013] FWC 8734, [17]; Dale Marky Industries Pty Ltd [2019] FWC 8446, [110]; Callahan v Graphic Impressions [2014] FWC 437, [18]; Hinchen v Moonee Valley Racing Club Inc [2016] FWC 4914, [11]; Rio Tinto Coal Australia Pty Ltd v Smith [2005] AIRC 318, [25]-[35].
[14] IGA Distribution (Vic) Pty Ltd v Nguyen [2011] FWAFB 4070.
[15] Moszko v Simplot Australia Pty Ltd (2021) FWCFB 6046, [62](g) and (h); Colson v Barwon Health [2013] FWC 8734, [21]-[22].
[16] Heugh v. Central Petroleum Ltd [No 5] [2014] WASC 311.
[17] Nguyen v Vietnamese Community in Australia t/a Vietnamese Community Ethnic School South Australia Chapter [2014] FWCFB 7198 at paras 19-20. See also Smith v Moore Paragon Australia Ltd PR942856, 48-54.
[18] Perkins v Grace Worldwide (Aust) Pty Ltd [1997] IRCA 15; cited in Nguyen v IGA Distribution (Vic) Pty Ltd [2011] WA 3354, 40.
[19] Perkins v Grace Worldwide (Aust) Pty Ltd [1997] IRCA 15.
[20] Nguyen v Vietnamese Community in Australia t/a Vietnamese Community Ethnic School South Australia Chapter [2014] FWCFB 7198 at para. 27; citing Perkins v Grace Worldwide (Aust) Pty Ltd [1997] IRCA 15.
[22] These were matters weighing against reinstatement in Dale v Marky Industries Pty Ltd [2019] FWC 8446, [111]; Lee v Superior Wood Pty Ltd [2020] FWCFB 1301; (2020) 295 IR 242, [55], [58], [66], [68]; Colson v Barwon Health [2013] FWC 8734, [88].
[23] see eg. Hatwell v Esso Australia Pty Ltd t/a Esso [2019] FWCFB 2895, [32]; Hinchen v Moonee Valley Racing Club Inc [2016] FWC 4914, [15].
[24] Mikl v Cape Australia Onshore Pty Ltd [2019] FWC 8503, [69]; Zhang v Kevin Australia Pty Ltd [2022] FWC 2928, [72].
[25] Zhang v Kevin Australia Pty Ltd [2022] FWC 2928, [69].
Printed by authority of the Commonwealth Government Printer
Karl Mouat
OS MCAP Pty Ltd [2025] FWC 3941
(1997) 72 IR 186
(2020) 295 IR 242