[2025] FWC 872
General information, not legal advice.
Fair Work Commission
2025-04-02
Original judgment source is linked above.
s.394 - Application for unfair dismissal remedy
Application for an unfair dismissal remedy - jurisdictional objection raised -- whether dismissal consistent with Small Business Fair Dismissal Code - jurisdictional objection dismissed - dismissal found to be unfair - reinstatement not appropriate - compensation ordered.
Ordering a remedy in relation to unfair dismissal.
That Mr Walker registered a business called Walker Environmental Services.
That the nature of the business was similar to that of Plumbtrax
That Mr Walker had taken steps to begin promoting his business while in the employ of Plumbtrax, including during time he was supposed to be working for Plumbtrax
That Mr Walker used Plumbtrax resources to promote his business without authorisation
That Mr Walker intended to solicit Plumbtrax customers and suppliers
Was Mr Walker's conduct in breach of his contract of employment?
"Confidential Information means all the information including trade secrets, Intellectual Property, marketing and business plans, client and supplier lists, computer software applications and programs, business contacts, finance, remuneration details, data concerning the Employer or any of its associated entities or any client of the Employer's, finances, operating margins, prospect's lists, and transactions of the Employer, but does not include information in the public domain otherwise than through a breach of an obligation of confidentiality."
(1) The Minister may, by legislative instrument, declare a Small Business Fair Dismissal Code.
(2) A person's dismissal was consistent with the Small Business Fair Dismissal Code if:
(a) immediately before the time of the dismissal or at the time the person was given notice of the dismissal (whichever happened first), the person's employer was a small business employer; and
(b) the employer complied with the Small Business Fair Dismissal Code in relation to the dismissal.
It is fair for an employer to dismiss an employee without notice or warning when the employer believes on reasonable grounds that the employee's conduct is sufficiently serious to justify immediate dismissal. Serious misconduct includes theft, fraud, violence and serious breaches of occupational health and safety procedures. For a dismissal to be deemed fair it is sufficient, though not essential, that an allegation of theft, fraud or violence be reported to the police. Of course, the employer must have reasonable grounds for making the report.
In other cases, the small business employer must give the employee a reason why he or she is at risk of being dismissed. The reason must be a valid reason based on the employee's conduct or capacity to do the job.
The employee must be warned verbally or preferably in writing, that he or she risks being dismissed if there is no improvement.
The small business employer must provide the employee with an opportunity to respond to the warning and give the employee a reasonable chance to rectify the problem, having regard to the employee's response. Rectifying the problem might involve the employer providing additional training and ensuring the employee knows the employer's job expectations.
In discussions with an employee in circumstances where dismissal is possible, the employee can have another person present to assist. However, the other person cannot be a lawyer acting in a professional capacity.
A small business employer will be required to provide evidence of compliance with the Code if the employee makes a claim for unfair dismissal to Fair Work Australia, including evidence that a warning has been given (except in cases of summary dismissal). Evidence may include a completed checklist, copies of written warning(s), a statement of termination or signed witness statements.
(1) If a small business employer has dismissed an employee without notice - that is, with immediate effect - on the ground that the employee has committed serious misconduct that falls within the definition in reg.1.07, then it is necessary for the Commission to consider whether the dismissal was consistent with the "Summary dismissal" section of the Code. All other types of dismissals by small business employers are to be considered under the "Other dismissal" section of the Code.
(2) In assessing whether the "Summary dismissal" section of the Code was complied with, it is necessary to determine first whether the employer genuinely held a belief that the employee's conduct was sufficiently serious to justify immediate dismissal, and second whether the employer's belief was, objectively speaking, based on reasonable grounds. Whether the employer has carried out a reasonable investigation into the matter will be relevant to the second element[6].
"Normally in order to hold a belief on reasonable grounds it will be necessary to have a discussion with the employee about the perceived serious misconduct and pay regard to the explanations and views given by the employee."[8]
"it was based on Mr Laurie's belief that the Applicant engaged in serious misconduct by conducting a business in direct competition and opposition to the Respondent"[10].
Did Mr Laurie have a genuinely held belief that Mr Walker's conduct was sufficiently serious to justify immediate dismissal?
Was Mr Laurie's belief based on reasonable grounds?
Was there a valid reason for dismissal related to Mr Walker's capacity or conduct?
Was Mr Walker notified of the reason for dismissal?
Was Mr Walker given an opportunity to respond to the valid reason?
Did Plumbtrax unreasonably refuse to allow Mr Walker to have a support person present to assist at discussions relating to the dismissal?
Was Mr Walker warned about unsatisfactory performance before the dismissal?
To what degree would the size of Plumbtrax enterprise or the absence of human resources management specialists or expertise would be likely to impact on the procedures followed in effecting the dismissal?
"... running a secondary business using company time and equipment, without the knowledge of the employer, is different to talking to your colleague about the footy while having a breather.[28]"
I may, subject to the Act, order Mr Walker's reinstatement, or the payment of compensation to Mr Walker.
Is an order for payment of compensation appropriate in all the circumstances of the case?
Compensation - what must be taken into account in determining an amount?
Effect of the order on the viability of Plumbtrax's enterprise
Remuneration that Mr Walker would have received, or would have been likely to receive, if he had not been dismissed.
Efforts of Mr Walker to mitigate the loss suffered by Mr Walker because of the dismissal
Amount of remuneration earned by Mr Walker from employment or other work during the period between the dismissal and the making of the order for compensation
Amount of income reasonably likely to be so earned by Mr Walker during the period between the making of the order for compensation and the actual compensation
Compensation - is the amount to be reduced on account of misconduct?
Compensation - how does the compensation cap apply?

[1] Witness Statement of Jeff Laurie, 12 March 2024 [9]
[2] Witness Statement of Jeff Laurie, 12 March 2024 [12] (and repeated again at [15]).
[3] Respondent's Outline of Submissions [13]
[4] Fair Work Act 2009 ss 591 and 577(1)
[5] Australian International Islamic College T/A Australian International Islamic v Paramjit Brownson [2024] FWCFB 465; King v Freshmore (Vic) Pty Ltd [2000] AIRC 1019
[6] Ryman v Thrash Pty Ltd [2015] FWCFB 5264 [41]
[7] Pinawin T/A RoseVi.Hair.Face.Body v Domingo [2012] FWAFB 1359 [29]
[9] Ryman v Thrash Pty Ltd [2015] FWCFB 5264 [37]
[10] Respondent's Outline of Submissions [35]
[11] Ibid [38]; see reg 107(2)(b)(ii)
[15] Sayer v Melsteel Pty Ltd [2011] FWAFB 7498 [14]
[16] Selvachandran v Peteron Plastics Pty Ltd [1995] IRCA 333; (1995) 62 IR 371 [373]
[18] Edwards v Giudice [1999] FWC 1836 [7]
[19] Raj Bista v Glad Group Pty Ltd t/a Glad Commercial Cleaning [2016] FWC 3009 [34]
[20] Kylie Smith v Bank of Queensland Ltd [2021] FWC 4 [124], [126]
[21] Newton v Toll Transport [2021] FWCFB 3457 [182]
[22] Crozier v Palazzo Corporation (1996) 98 IR 137 [73]
[23] RMIT v Asher [2010] FWAFB 1200; (2010) 194 IR 1 [14] - [15]
[24] Gibson v Bosmac Pty Ltd [1995] IRCA 222; (1995) 60 IR 1 [7]
[25] Pecker Maroo Verano Pty Ltd v Stevens [2024] FWCFB 147 [110]
[26] See for example Amoco Australia Pty Ltd v Rocca Bros Motor Engineering Co Pty Ltd (1973) CLR 288
[29] ALH Group Pty Ltd t/a The Royal Exchange Hotel v Mulhall (2002) IR 117 357 [51]; Edwards v Giudice [1999] FCA 1836 [6] - [7]
[30] Nguyen v Vietnamese Community in Australia t/a Vietnamese Community Ethnic School South Australia Chapter [2014] FWCFB 7198 [9]
[31] Vickery v Assetta [2004] FCA 555; D.A. Moore v Highpace Pty Ltd (1998) Print Q0871
[32] He v Lewin [2004] FCAFC 161 [58]
[33] Ellawalla v Australian Postal Corporation Print S5109 [34]
[34] Sprigg v Paul's Licensed Festival Supermarket [1998] AIRC 989; (1998) 88 IR 21
[35] Fair Work Act 2009 s 392(5) and (6)
[36] Double N Equipment Hire Pty Ltd t/a A1 Distributions v Humphries [2016] FWCFB 7206 [17]
Printed by authority of the Commonwealth Government Printer
Mr Gabriel Walker
Plumbtrax Pty Ltd [2025] FWC 872
(2010) 194 IR 1
(1995) 62 IR 371
(1996) 98 IR 137
(1995) 60 IR 1
(1998) 88 IR 21