[2026] FWC 347
General information, not legal advice.
Fair Work Commission
2026-02-09
Original judgment source is linked above.
s.394 - Application for unfair dismissal remedy
Application for an unfair dismissal remedy - dismissal harsh and unreasonable - compensation ordered.
[1] Mr Dale-McCormick (Applicant) has made an application pursuant to section 394 of the Fair Work Act 2009 (the Act) for an unfair dismissal remedy. The application was brought against his former employer, Sleepeezee Bedding Australia Pty Ltd (Respondent), in respect of a dismissal that was notified to him and took effect on 13 May 2025. The application was brought on 20 May 2025.
[2] The summary dismissal that the Applicant was subject to came about as a consequence of returning a positive result for cannabis on a preliminary roadside test. The roadside test was administered during working hours on a Wednesday, while the Applicant was working in his role as a heavy combination truck driver for the Respondent. The Applicant promptly admitted to the Respondent that he had smoked cannabis over the weekend, prior to resuming work on Monday evening.
[3] The matter proceeded before me by way of oral hearing on 8 September 2025, wherein neither party was represented. The Applicant gave evidence and relied on a number of documents. The Respondent relied on two witnesses, Mr Jesse Ross, the National Operations Manager, and Mr Victor Prawdiuk, its Chief Financial Officer. The Respondent also tendered a number of documents. The material provided by both parties dealt not only with the circumstances of the dismissal, but also with a dispute concerning the appropriate entitlements in respect of work that had been performed during the employment.
[4] Section 396 of the Act requires that I give consideration to the following matters before considering the merits of the application before me:
(a) Whether the application was made within the period required in subsection 394(2);
(b) Whether the person was protected from unfair dismissal;
(c) Whether the dismissal was consistent with the Small Business Fair Dismissal Code;
(d) Whether the dismissal was a case of genuine redundancy.
I state my findings as to these matters briefly below.
[5] Section 394(2) provides that an application for an unfair dismissal remedy must ordinarily be brought within 21 days of the date the dismissal took effect. There is no dispute that that the application was brought promptly, 7 days after the dismissal took effect. There is also no dispute that what occurred here was a termination of employment at the employer's initiative.
[6] Section 382 of the Act provides that a person is protected from unfair dismissal if, at the time of being dismissed:
(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
(b) one or more of the following apply:
(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.
[9] In the circumstances, there is no dispute that the Applicant was protected from unfair dismissal.
Was the dismissal consistent with the Small Business Fair Dismissal Code
[10] As noted above, the Respondent stated in its Form F3 that it had 143 employees at the time of the Applicant's dismissal. The Respondent thus does not qualify as a "small business employer", so this requirement is of no relevance to the matter.
[11] The dismissal was a dismissal without notice based on the conduct of the employee. It was not contended by any party that the dismissal was brought about by a redundancy situation or that there was redundancy, genuine or otherwise.
[12] Section 387 of the FW Act provides that, in considering whether it is satisfied that a dismissal was harsh, unjust or unreasonable, the Commission must take into account:
(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.
[17] The text messages provided by the Applicant further indicate that he contacted Mr Ross the next day, a couple of hours before the prohibition period ended, to inquire as to what would be happening that day and was informed that his next journey had been re-allocated.
"The decision as to whether to terminate or not would be made after the meeting and it was dependent on his responses to questions raised by Mr Ross. After considering the applicant's responses, if Mr Ross was satisfied with the responses, termination would not occur. However, if not satisfied, the termination letter would be given to the applicant, post meeting after having considered what the applicant stated at the meeting.
It was decided to have a termination ready, as I might have been unavailable, to draft a letter post meeting due to my commitments and the fact that an exact time had not been set for a meeting at that stage. The company did not want to drag the process out unnecessarily until I was available to draft a letter."[26]
[23] The evidence of Mr Ross is consistent with what Mr Prawdiuk said:
"In preparation for the meeting, we prepared a termination letter...this was a precautionary measure and was to be issued only if the outcome of the meeting justified termination. The company maintains a willingness to work with employees in circumstances where an incident is either explainable or does not breach policy in a serious way"[27]
[25] The Applicant says that immediately after being provided with the letter of termination, he asked for a copy of the drug and alcohol policy from Mr Ross - being a policy that was referenced in the letter of termination. Mr Ross does not recall that request. It was also requested numerous times in writing following the termination.
[27] The Applicant's evidence at the hearing was that he remained unemployed, but was actively seeking work and had upgraded his license to a multi-combination licence (road train) to assist in that endeavour.
"Given the confirmed positive drug test and the potential risk of impairment, I determined that it was unacceptable to permit a driver who may be under the influence to operate heavy vehicles on public roads"[38]
[33] For completeness and avoidance of doubt, the results of the laboratory analysis of the roadside sample had not in fact been communicated to the Applicant or been known to the Respondent at the time of the termination. Nor was there any suggestion in the material of a concern, or a basis for a concern, that the Applicant would use drugs in future.
a) It prohibits the possession, solicitation, selling, distribution, or consumption of illicit or non-prescribed drugs on the Respondent's premises or while performing duties for the Respondent;
b) It prohibits the soliciting, selling or distribution of prescribed drugs on the Respondent's premises, while performing duties on behalf of the Respondent or when operating the Respondent's equipment;
c) It prohibits workers and visitors from being under the influence of any:
- Illicit drugs or alcohol whilst on any of the Respondent's premises, operating any of the Respondent's equipment or while performing duties on behalf of the Respondent.
- Prescribed or not prescribed drugs to a level where it could cause injury to any person, including the user.
[41] As would be apparent from the discussion of valid reason above, I am not satisfied that the Applicant was notified of a valid reason for his termination prior to the termination occurring, or at all.
[42] An employee protected from unfair dismissal should be provided with an opportunity to respond to any reason for their dismissal relating to their conduct or capacity. An opportunity to respond is to be provided before a decision is taken to terminate the employee's employment.[51]
[45] Where an employee protected from unfair dismissal has requested a support person be present to assist in discussions relating to the dismissal, an employer should not unreasonably refuse that person being present. However, there is no positive obligation on an employer to offer an employee the opportunity to have a support person:
"This factor will only be a relevant consideration when an employee asks to have a support person present in a discussion relating to dismissal and the employer unreasonably refuses. It does not impose a positive obligation on employers to offer an employee the opportunity to have a support person present when they are considering dismissing them."[55]
Warning about unsatisfactory performance before the dismissal
[47] As the dismissal did not relate to unsatisfactory performance, this factor is not relevant to the present circumstances.
[51] The Applicant ought to have been given more notice of an opportunity to meet an allegation that he had not complied with the drug and alcohol policy. Whilst Mr Ross was not a Human Resources expert, he didn't need to be in order to anticipate that it would have been appropriate to provide more notice of the allegations and adequate time to respond to them.
[52] I consider that the Respondent proceeded with undue haste toward an outcome in this case, on the basis of insufficient information. That exposed the Applicant to some procedural unfairness, in the sense that he was not informed in sufficient detail of the Respondent's concerns prior to attending the disciplinary meeting, even though the employer had clearly articulated what those concerns were at that time by way of its draft (and in the event, final) letter of termination.
[53] Regrettably, the Applicant was deprived of the opportunity to mount a compelling case that there was no basis to find that he had breached the drug and alcohol policy. The employer also did not give appropriate weight to the Applicant's legitimate protestations that there was no evidence of any impairment.
[54] I also consider it relevant that the Applicant made early admissions concerning the use of cannabis.
[55] Having considered the matters I am required to consider, I find that the Applicant's dismissal was harsh and unreasonable. A valid reason has not been provided, and the Applicant was not given a reasonable opportunity to meet the concerns that the employer knew it wanted to raise with him. The employer was negatively impacted by the Applicant's off-duty poor decision making, but not to an extent that justified termination. The response by the employer was disproportionate.
[56] The response by the Respondent was also not reasonable on the facts known or ascertainable. It ought to have been reasonably apparent to the Respondent that the case it had mounted against the Applicant in its draft (and ultimately final) termination letter could not be made out on the material it had available to it the time.
[57] I digress to make the obvious point that, had the focus of the meeting on 13 May 2025 been the impact of the Applicant's conduct on the employer, education on the policy, a warning and a requirement that the Applicant submit to a program of testing under that policy for a reasonable period of time, this whole affair could have been avoided.
[58] I now turn to consider the appropriate disposition of this matter by way of remedy. Under section 390(3) of the FW Act, I must not order the payment of compensation to the Applicant unless:
(a) I am satisfied that reinstatement of the Applicant is inappropriate; and
(b) I consider an order for payment of compensation is appropriate in all the circumstances of the case.
[59] The remedy sought by the Applicant is compensation. I do not consider that respectful relations could be restored were the Applicant to be reinstated, given the lack of faith the Applicant has in the Respondent's compliance with his entitlements, his suspicion that the drug and alcohol policy was created after the event, and the sense of injustice he (in my view, justifiably) harbours in relation to the sequence of events that led to this matter coming forward, including the repeated refusals on the part of the Respondent to supply him with a copy of the drug and alcohol policy. In all the circumstances, I am satisfied that reinstatement of the Applicant is inappropriate.
[60] Conversely, there is clearly a compensable loss arising from the termination of the Applicant's employment and I consider it is appropriate to order that an amount of compensation be paid in recognition of that.
[61] Section 392(2) of the FW Act requires all of the circumstances of the case to be taken into account when determining an amount to be paid as compensation to the Applicant in lieu of reinstatement including:
(a) the effect of the order on the viability of the Respondent's enterprise;
(c) the remuneration that the Applicant would have received, or would have been likely to receive, if the Applicant had not been dismissed;
(d) the efforts of the Applicant (if any) to mitigate the loss suffered by the Applicant because of the dismissal;
(e) the amount of any remuneration earned by the Applicant from employment or other work during the period between the dismissal and the making of the order for compensation;
(f) the amount of any income reasonably likely to be so earned by the Applicant during the period between the making of the order for compensation and the actual compensation; and
(g) any other matter that the Commission considers relevant.
[63] The Commission is required to take into amounts earned or likely to have been earned since the dismissal. The Applicant had, as at the date of the hearing, not succeeded in obtaining alternative employment, notwithstanding his efforts and upgrading his licence. There is no reason to assume that state of affairs has changed. I accordingly make no deductions to the provisional amount specified about on account of the matters I am required to consider pursuant to paragraphs (e) and (f) of subsection 392(2).
[64] I do not consider that, in the circumstances of this case and the relatively short future projected period of employment, that any adjustment needs to be made for contingencies under paragraph (g) of subsection 392(2).
[65] I have considered the impact of taxation. Compensation will be determined as a gross amount, and it will be left to the Respondent to deduct any amount of taxation required by law. There are no other matters that are relevant in determining an amount of compensation apart from those to which I now turn.
[66] There was no evidence provided as to the effect of an order on the viability of the Respondents enterprise. I regard this as neutral in my weighing of the relevant considerations and in assessing the appropriate level of compensation.
[67] I am satisfied that The Applicant made reasonable efforts to mitigate his loss by looking for alternative employment opportunities following his dismissal and by increasing employability by acquiring a licence to drive additional configurations of heavy vehicles. I am satisfied that no discount to the provisional compensation sum ought to be applied.
[68] Subsection (3) of section 392 requires a reduction of the amount of compensation otherwise determined if the Commission is satisfied that an applicant's misconduct contributed to the employer's decision to terminate them. Paragraph (g) of subsection 392(2) requires the Commission to take into account matters considered relevant in the determination of an amount of compensation. The Applicant's conduct clearly did contribute to the decision to dismiss him, however I am not satisfied that his poor judgement to consume cannabis more than a day before getting behind the wheel on Monday evening rose to the level that would appropriately be described as misconduct. There is certainly no evidence that it was done with the intention of causing harm to anybody's safety or to the employer's interests more generally. Nonetheless, it was a careless act with the potential (and actual) consequence of stranding the truck for a period of time, leaving the Applicant unable to perform his duties and forcing the employer to make alternative arrangements. For that reason, a reduction is appropriate pursuant to paragraph (g) of subsection 392(2), notwithstanding that, I do not consider that the conduct is misconduct. I consider an appropriate reduction in the circumstances is a discount factor of 30%. This results in a compensation award of $31,304, plus superannuation. The relevant rate of contribution as at the date of the dismissal was 11.5%, so I assess the value of the superannuation component as $3,600. The proposed compensation is below the compensation cap set by subsections (5) and (6) of section 392 and is of an amount I consider appropriate in all the circumstances of the case.
[69] I have found that the Applicant's dismissal was harsh and unreasonable, such that he is entitled to an unfair dismissal remedy.
[70] The remedy I have determined is compensation. I consider it appropriate to make an order that the Respondent pay the Applicant the amount of $31,304 gross, less taxation as required by law, plus superannuation of $3,600. I will order these amounts to be paid with 28 days of this decision.

[1] PN109, Exhibit A1 (Hearing Book page 5), Exhibit A3 (Hearing Book page 33).
[2] Respondent's F3 (Hearing Book page 120), Exhibit A1 (Hearing Book page 5).
[4] 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].
[6] Exhibit R2 at [8], [11], Exhibit R6.
[15] Exhibit A3 (Hearing Book page 52).
[16] Exhibit A3 (Hearing Book page 53).
[19] Exhibit A3 (Hearing Book page 55).
[20] Exhibit A3 (Hearing Book page 56).
[21] Exhibit A5 (Hearing Book Page 60).
[23] Exhibit R6 (Hearing Book page 85).
[31] Selvachandran v Peteron Plastics Pty Ltd [1995] IRCA 333; (1995) 62 IR 371, 373.
[33] Walton v Mermaid Dry Cleaners Pty Ltd [1996] IRCA 267; (1996) 142 ALR 681, 685.
[34] Edwards v Justice Giudice [1999] FCA 1836, [7].
[35] King v Freshmore (Vic) Pty Ltd Print S4213 (AIRCFB, Ross VP, Williams SDP, Hingley C, 17 March 2000), [23]-[24].
[36] Exhibit A3 at Hearing Book page 38.
[42] B, C and D v Australian Postal Corporation t/a Australia Post [2013] FWCFB 6191, [36].
[47] Bartlett v Ingleburn Bus Services Pty Ltd [2020] FWCFB 6429, [19]; Reseigh v Stegbar Pty Ltd [2020] FWCFB 533, [55].
[48] Crozier v Palazzo Corporation Pty Ltd (2000) 98 IR 137, 151.
[49] Previsic v Australian Quarantine Inspection Services Print Q3730 (AIRC, Holmes C, 6 October 1998).
[51] Crozier v Palazzo Corporation Pty Ltd t/a Noble Park Storage and Transport Print S5897 (AIRCFB, Ross VP, Acton SDP, Cribb C, 11 May 2000), [75].
[52] RMIT v Asher [2010] FWAFB 1200; (2010) 194 IR 1, 14-15.
[53] Gibson v Bosmac Pty Ltd [1995] IRCA 222; (1995) 60 IR 1, 7.
[55] Explanatory Memorandum, Fair Work Bill 2008 (Cth), [1542].
[56] PN490, Exhibit A1 at Hearing Book page 10.
[57] Jetstar v Meetson-Lemkes [2013] FWCFB 9075, [68].
[58] Williams v Top Image Hair Design [2012] FWA 9517, [40].
[59] Exhibit A3 at Hearing Book page 53.
Printed by authority of the Commonwealth Government Printer
Mr Brayden Dale-Mc Cormick
SLEEPEEZEE BEDDING AUSTRALIA PTY. LTD. [2026] FWC 347
(1995) 62 IR 371
(1996) 142 ALR 681
(2000) 98 IR 137
(2010) 194 IR 1
(1995) 60 IR 1