[2024] FWC 1346
General information, not legal advice.
Fair Work Commission
2024-05-22
Original judgment source is linked above.
s.394 - Application for unfair dismissal remedy
Application for an unfair dismissal remedy - no material filed by Respondent - Respondent non-compliant and unresponsive - matter determined based on material provided - Reinstatement not appropriate - Compensation awarded
When can the Commission order a remedy for unfair dismissal?
(a) the Commission is satisfied that the Applicant was protected from unfair dismissal at the time of being dismissed; and
When is a person protected from unfair dismissal?
(a) the person is an employee who has completed a period of employment with his or her employer of at least the minimum employment period; and
(i) a modern award covers the person;
(ii) an enterprise agreement applies to the person in relation to the employment;
(iii) the sum of the person's annual rate of earnings, and such other amounts (if any) worked out in relation to the person in accordance with the regulations, is less than the high income threshold.
Whether person protected from unfair dismissal (minimum employment period & high-income threshold)
(b) the dismissal was harsh, unjust or unreasonable; and
(c) the dismissal was not consistent with the Small Business Fair Dismissal Code; and
(d) the dismissal was not a case of genuine redundancy.
As per the directions issued by Commissioner Durham on 26 February 2024, material for the Respondent (Melco Engineering Pty Ltd) was due to be filed with the Commission, and served on the Applicant, by 25 March 2024.
The Commission has not received any material from the Respondent, nor has it received a request for an extension.
Please advise by close of business today, why material for the Respondent has not been filed in accordance with the Commissioner's directions.
Failure to comply with these directions will result in the Commissioner making a decision based only on the material that has been provided. Should you choose not to respond, this may result in the matter being determined in your absence without further notice and a decision adverse to your interest may also be made."
"A Jones v Dunkel inference is an inference drawn about a deficiency of evidence led by one side in a case in court, named after Jones v Dunkel & Anor [1959] HCA 8; (1959) 101 CLR 298. The Rule in Jones v Dunkel is 'a principle of the law of evidence whereby a particular form of reasoning is authorised': Manly Council v Byrne & Anor [2004] NSWCA 123; the reasoning is that if a prima facie case has been established..., and the other party offers no explanation or contradiction of facts from which an inference may be drawn, then the fact that the party might have proved the contrary had the party chosen to give evidence may properly be taken into account as a circumstance in favour of drawing the inference; it increases the weight of the proof brought by one side and reduces the weight of the incomplete evidence brought by the other..."
"[29] The Commission is not a court. It is not bound by the rules of evidence. It is required to perform its functions and exercise its powers in a manner that is quick, informal and avoids unnecessary technicalities. But when the Commission makes a finding of fact, it must proceed by reference to rationally probative material. That material may include, inter alia, evidence or, in an appropriate case, submissions. For example, it may be appropriate for a finding of fact to be made on the basis of an unchallenged submission made by one party, particularly when the other party is legally represented." (emphasis added)
"The second aspect, critical to this appeal, relates to the weight or cogency of the evidence: that is, as a general proposition, evidence, which is not inherently incredible and which is unchallenged, ought to be accepted: Precision Plastics Pty Limited v Demir [1975] HCA 27; (1975) 132 CLR 362 at 370-371 (per Gibbs J, Stephen J agreeing, Murphy J generally agreeing). The evidence may of course be rejected if it is contradicted by facts otherwise established by the evidence or the particular circumstances point to its rejection." (emphasis added)
Was the dismissal harsh, unjust or unreasonable?
(a) whether there was a valid reason for the dismissal related to the person's capacity or conduct (including its effect on the safety and welfare of other employees); and
(b) whether the person was notified of that reason; and
(c) whether the person was given an opportunity to respond to any reason related to the capacity or conduct of the person; and
(d) any unreasonable refusal by the employer to allow the person to have a support person present to assist at any discussions relating to dismissal; and
(e) if the dismissal related to unsatisfactory performance by the person - whether the person had been warned about that unsatisfactory performance before the dismissal; and
(f) the degree to which the size of the employer's enterprise would be likely to impact on the procedures followed in effecting the dismissal; and
(g) the degree to which the absence of dedicated human resource management specialists or expertise in the enterprise would be likely to impact on the procedures followed in effecting the dismissal; and
(h) any other matters that the FWC considers relevant.
Was there a valid reason for the dismissal related to the Applicant's capacity or conduct?
Was the Applicant notified of the valid reason?
Was the Applicant given an opportunity to respond to any valid reason related to their capacity or conduct?
Did the Respondent unreasonably refuse to allow the Applicant to have a support person present to assist at discussions relating to the dismissal?
Was the Applicant warned about unsatisfactory performance before the dismissal?
To what degree would the size of the Respondent's enterprise be likely to impact on the procedures followed in effecting the dismissal?
To what degree would the absence of dedicated human resource management specialists or expertise in the Respondent's enterprise be likely to impact on the procedures followed in effecting the dismissal?
Is the Commission satisfied that the dismissal of the Applicant was harsh, unjust or unreasonable?
(1) Subject to subsection (3), the FWC may order a person's reinstatement, or the payment of compensation to a person, if:
(a) the FWC is satisfied that the person was protected from unfair dismissal (see
(b) the person has been unfairly dismissed (see Division 3).
(2) The FWC may make the order only if the person has made an application under
(3) The FWC must not order the payment of compensation to the person unless:
(a) the FWC is satisfied that reinstatement of the person is inappropriate; and
I am satisfied that Ms Campbell is a person protected from unfair dismissal, that she has been unfairly dismissed and that she made an application under s 394.
(b) the FWC considers an order for payment of compensation is appropriate in
"2. The Respondent is required to file the following material in the Fair Work Commission, and serve a copy on the Applicant, by no later than no later than 4:00pm on Monday, 25 March 2024:
a. Submissions in response to the application including the remedy sought; and
b. Witness Statements for each of the witnesses the Respondent intends to call at the hearing in response to the application." (emphasis added)
Is an order for compensation appropriate in all the circumstances?
(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
(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
(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
(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
(6) The amount is the total of the following amounts:
(whichever is higher) for any period of employment with the employer during
(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.
Section 392(2)(c) - Remuneration the person would have received
"[i]n determining the remuneration that the Applicant would have received, or would have been likely to receive... the Commission must address itself to the question whether, if the actual termination had not occurred, the employment would have been likely to continue, or would have been terminated at some time by another means. It is necessary for the Commission to make a finding of fact as to the likelihood of a further termination, in order to be able to assess the amount of remuneration the employee would have received, or would have been likely to receive, if there had not been the actual termination."
Section 392(2)(e) & (f) - Remuneration and income earned
Section 392(3) - Contribution to dismissal by misconduct not relevant
Section 392(4) - Shock, distress etc disregarded
tax) amount of compensation, to be taxed according to law.
[4] ZA v GDI Pty Ltd [2021] FWC 3193 at [26].
[5] Lee Vickery v Encompass Books [2013] FWC 6424 at [9].
[19] Jennifer Roberts v Drewmaster Pty. Ltd. [2024] FWC 332 at [136].
[22] Sayer v Melsteel Pty Ltd [2011] FWAFB 7498, [14]; Smith v Moore Paragon Australia Ltd PR915674 (AIRCFB, Ross VP, Lacy SDP, Simmonds C, 21 March 2002), [69].
[23] Selvachandran v Peteron Plastics Pty Ltd [1995] IRCA 333; (1995) 62 IR 371, 373.
[25] Walton v Mermaid Dry Cleaners Pty Ltd [1996] IRCA 267; (1996) 142 ALR 681, 685.
[26] Edwards v Justice Giudice [1999] FCA 1836, [7].
[27] King v Freshmore (Vic) Pty Ltd Print S4213 (AIRCFB, Ross VP, Williams SDP, Hingley C, 17 March 2000), [23]-[24].
[28] [2023] FWC 1901 at [27]- [32].
[29] [2019] FWC 3442 at [79]- [85].
[30] [2018] FWC 4665 at [18], [20].
[31] Chubb Security Australia Pty Ltd v Thomas Print S2679 (AIRCFB, McIntyre VP, Marsh SDP, Larkin C, 2 February 2000), [41]; Read v Cordon Square Child Care Centre [2013] FWCFB 762, [46]-[49].
[32] Chubb Security Australia Pty Ltd v Thomas Print S2679 (AIRCFB, McIntyre VP, Marsh SDP, Larkin C, 2 February 2000), [41]; Read v Cordon Square Child Care Centre [2013] FWCFB 762, [46]-[49].
[33] ALH Group Pty Ltd t/a The Royal Exchange Hotel v Mulhall (2002) 117 IR 357, [51]. See also Smith v Moore Paragon Australia Ltd PR915674 (AIRCFB, Ross VP, Lacy SDP, Simmonds C, 21 March 2002), [92]; Edwards v Justice Giudice [1999] FCA 1836, [6]-[7].
[34] Byrne v Australian Airlines Ltd [1995] HCA 24 (11 October 1995) at para. 128 (McHugh and Gummow JJ), [(1995) 185 CLR 410 at p. 465].
[35] Applicant Submissions at 7a and 7c.
[36] Vennix v Mayfield Childcare Limited [2020] FWCFB 550 at [20].
[38] ERGT Australia Pty Ltd v Govender [2021] FWCFB 4508 at [35].
[39] Elefantis v The Trustee for Timber Ridge Unit Trust [2022] FWCFB 43 at [67].
[40] McCulloch v Clavary Health Care Adelaide [2015] FWCFB 873 at [29].
[41] [2004] FCAFC 161 at [58].
[48] Bowden v Ottrey Homes Cobram and District Retirement Villages Inc. T/A Ottrey Lodge [2013] FWCFB 431 at [55];
Vennix v Mayfield Childcare Limited [2020] FWCFB 550 at [32].
[49] Applicant Submissions at 2a & Applicant Witness Statement.
Printed by authority of the Commonwealth Government Printer
Kelly Norgate
Melco Engineering Pty Ltd [2024] FWC 1346
(1975) 132 CLR 362
(1995) 62 IR 371
(1995) 185 CLR 410
(1988) 88 IR 21
(1959) 101 CLR 298
(1996) 142 ALR 681
(2002) 117 IR 357