[2025] FWC 2305
General information, not legal advice.
Fair Work Commission
2025-08-07
Original judgment source is linked above.
s.394 - Application for unfair dismissal remedy
Royal Institution of Charted Surveyors / RICS Australasia Pty Ltd
Application for unfair dismissal remedy - dismissal was not a genuine redundancy - dismissal found to be harsh, unjust or unreasonable - compensation ordered
(a) the person was protected from unfair dismissal at the time of being dismissed; and
[7] Section 382 of the FW Act explains when a person is protected from unfair dismissal. To be a person protected from unfair dismissal, the person must have completed a period of employment with his or her employer of at least the minimum employment period (section 382(a)); and one or more of the following apply:
(b) an enterprise agreement applies to the person in relation;
(c) 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.
Emily has kept us fully up to date with your situation, and the formal letter confirming your termination will be sent shortly.
As the person whose maternity created the fixed term role you are in has returned, the business no longer has a need to cover the maternity absence. This is what has triggered the redundancy conversation.
In clause 17 of your contract, it states that your notice period is 6 weeks, and in clause 26 it confirms that the company may terminate your contract at any time by proving (sic) the period of notice in writing. This notice may be paid in lieu rather than requiring you to work.
There is no requirement for us to pay until the end of the contract, as there is a clear business rational to why the contract is being terminated early.
The individual whose maternity leave resulted in the requirement of your fixed term position returning to work means that your role is no longer needed. Regrettably this means your employment will terminate. This decision is not a reflection on your performance. Your employment will end on the 31st March 2025, and your contract confirms that your notice period is 6 weeks.
(1) A person's dismissal was a case of genuine redundancy if:
(a) the person's employer no longer required the person's job to be performed by anyone because of changes in the operational requirements of the employer's enterprise; and
(b) the employer has complied with any obligation in a modern award or enterprise agreement that applied to the employment to consult about the redundancy.
(2) A person's dismissal was not a case of genuine redundancy if it would have been reasonable in all the circumstances for the person to be redeployed within:
(a) the employer's enterprise; or
(b) the enterprise of an associated entity of the employer.
Whether RICS no longer required Mr Siriphone's job to be performed by anyone because of changes in the operational requirements of RICS's enterprise: Section 389(1)(a)
I enquired with Ms Gemmell to why she believed the advert had been for a 12 month contract and she confirmed that the role should have gone live earlier, however there had been a delay with the approval from Finance.[40]
Whether RICS has complied with any obligation in a modern award or enterprise agreement that applied to consult about the redundancy: Section 389(1)(b)
accountants and finance, marketing, legal, human resources, public relations and information technology specialists.
Whether it would have been reasonable in all the circumstances for Mr Siriphone to be redeployed within RICS's enterprise or the enterprise of an associated entity of RICS: Section 389(2)
[66] It is for the FWC, as a specialist statutory tribunal, to determine whether redeployment would have been reasonable in any given case. Within the wide bounds of what is legally reasonable, that assessment is to be made having regard to such matters as the FWC thinks are apt to assist it. If, in a given case, there is reason to think that an employer could have taken steps that would have enabled redeployment in preference to dismissal, that possibility may fairly be brought to bear upon the FWC's assessment of what "would have been reasonable in all [of] the circumstances".
The High Court of Australia dismissed an appeal from the decision of the Full Court of the Federal Court of Australia in Helensburgh Coal.[45]
(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.
A determination as to whether a dismissal was harsh, unjust or unreasonable involves the application of a broad discretionary standard. The discretion is nevertheless one that must be exercised judicially, that is, in accordance with applicable legal principles...The classic statement of principle comes from the judgement of McHugh and Gummow JJ in Byrne v Australian Airlines Ltd (1995) 185 CLR 410 at 465:
"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."
In Byrne v Australian Airlines (1995) 185 CLR 410 at 467 McHugh and Gummow JJ endorsed the observations of Sheppard and Heerey JJ in Bostik (Aust) Pty Ltd v Gorgevski (No 1) [1992] FCA 209; (1992) 36 FCR 20 at 28 in relation to the phrase "harsh, unjust or unreasonable":
"These are ordinary non-technical words which are intended to apply to an infinite variety of situations where employment is terminated. We do not think any redefinition or paraphrase of the expression is desirable. We agree with the learned trial judge's view that a court must decide whether the decision of the employer to dismiss was, viewed objectively, harsh, unjust or unreasonable. Relevant to this are the circumstances which led to the decision to dismiss and also the effect of that decision on the employer. Any harsh effect on the individual employee is clearly relevant but of course not conclusive. Other matters have to be considered such as the gravity of the employee's misconduct."
Whether there was a valid reason for the dismissal related to Mr Siriphone's capacity or conduct (including its effect on the safety and welfare of other employees): Section 387(a)
Whether Mr Siriphone was notified of that reason: Section 387(b)
Whether Mr Siriphone was given an opportunity to respond to any reason related to his capacity or conduct: Section 387(c)
Any unreasonable refusal by RICS to allow Mr Siriphone to have a support person to assist at any discussions relating to the dismissal: Section 387(d)
If the dismissal related to unsatisfactory performance by Mr Siriphone - whether Mr Siriphone had been warned about that unsatisfactory performance before the dismissal: Section 387(e)
The degree to which the size of RICS's enterprise would be likely to impact on the procedures followed in effecting the dismissal: Section 387(f)
The degree to which the absence of dedicated human resource management specialists or expertise in the enterprise would likely to impact on the procedures followed in effecting Mr Siriphone's dismissal: Section 387(g)
Any other relevant matters that the FWC considers relevant: Section 387(h)
Overall conclusion whether Mr Siriphone's dismissal was harsh, unjust or unreasonable
(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.
[16] The well-established approach to the assessment of compensation under s.392 of the FW Act, taking into account the matters specified in s.392(2), is to apply the "Sprigg formula" derived from the Australian Industrial Relations Commission Full Bench decision in Sprigg v Paul Licensed Festival Supermarket. This approach was articulated in the context of the FW Act in Bowden v Ottrey Homes Cobram and District Retirement Villages. Under that approach, the first step to be taken in assessing compensation is to consider s.392(2)(c) - that is, to determine what the applicant would have received, or would have been likely to receive, if the person had not been dismissed...
[17] The identification of this starting point amount "necessarily involves assessments as to future events that will often be problematic". Once this first step has been undertaken, various adjustments are made in accordance with s.392 and the formula for matters including monies earned since dismissal, contingencies, any reduction on account of the employee's misconduct and the application of the cap of six months' pay. This approach is however subject to the overarching requirement to ensure that the level of compensation is in an amount that is considered appropriate having regard to all the circumstances of the case.
The effect of the order on the viability of RICS's enterprise: Section 392(a)
The length of Mr Siriphone's service with RICS: Section 392(b)
The remuneration that Mr Siriphone would have received, or would have been likely to receive, if Mr Siriphone had not been dismissed: Section 392(c)
The efforts of Mr Siriphone (if any) to mitigate the loss suffered because of his dismissal: Section 392(d)
The amount of any remuneration earned by Mr Siriphone from employment or other work during the period between the dismissal and the making of the order for compensation: Section 392(e)
The amount of any income reasonably likely to be so earned by Mr Siriphone during the period between the making of the order for compensation and the actual compensation: Section 392(2)(f)
Any other matters that the FWC considers relevant: Section 392(2)(g)
Step 1: Estimate the remuneration the employee would have received, or have been likely to have received, if the employer had not terminated the employment (remuneration lost).
Step 2: Deduct monies earned since termination. Workers' compensation payments are deducted but not social security payments. The failure of an applicant to mitigate his or her loss may lead to a reduction in the amount of compensation ordered.
Step 3: Discount the remaining amount for contingencies.
Step 4: Calculate the impact of taxation to ensure that the employee receives the actual amount he or she would have received if they had continued in their employment.
[1] Exhibit R2, Digital Hearing Book (DHB) page 114.
[2] Paragraph 4 of Exhibit R2, DHB, page 109.
[3] Paragraph 3, Exhibit R2, DHB page 109.
[4] Paragraph 7, Exhibit R2, DHB, page 109.
[6] Paragraph 6, Exhibit R2, DHB, page 109.
[7] Paragraph 8, Exhibit R2, DHB, page 109.
[8] Paragraph 8, Exhibit R2, DHB, page 109.
[9] Paragraph 2, Exhibit A1, DHB, page 14.
[13] Clause 4 & Items 1 & 2 of the Contract, DHB page 113, 119.
[15] Paragraph 17, Exhibit R2, DHB page 110.
[16] Paragraph 10 of Exhibit A1, DHB, page 15.
[18] Paragraph 30, Exhibit R1, DHB, page 111.
[26] Helensburgh Coal Pty Ltd v Mr Neil Bartley and Mr Jake Bennett and Others [2022] FWCFB 166 at [32] - [33].
[30] Ulan at [14] - [15], [19] - [20].
[31] Paragraphs 8 - 11 of the Applicant's Outline of Submissions, DHB, page 18, paragraph 8 of the Applicant's Outline of Submissions in Response, DHB, page 66.
[32] DHB, page 99, paragraph 19 of Exhibit R2, DHB, page 110.
[33] Amy Veronica Greene v Floreat Hotel - CEH Group t/a Floreat Hotel [2021] FWC 2198 at [99], Amy Veronica Greene v Floreat Hotel - CEH Group t/a Floreat Hotel [2021] FWCFB 4103 at [22], Nettleford v Kym Smoker Pty Ltd [1996] IRCA 495, (1996) 69 IR 370, 373.
[34] Explanatory Memorandum to Fair Work Bill 2008, paragraph 1548.
[37] Paragraphs 35 - 36 of Exhibit R2, DHB, page 112.
[38] Paragraph 3 of Exhibit A1, DHB, page 14.
[39] Paragraphs 1 & 3 of Exhibit A1, DHB, page 14.
[40] Paragraph 37 of Exhibit R2, DHB, page 112.
[41] Paragraph 8 of Exhibit A1, DHB, page 15.
[42] Kestrel Coal Pty Limited v Odette Lennox [2025] FWCFB 114 at [8] - [13].
[43] Technical and Further Education Commission t/a TAFE NSW v L. Pykett [2014] FWCFB 714 at [36].
[44] Helensburgh Coal Pty Ltd v Bartley [2024] FCAFC 45.
[45] Helensburgh Coal Pty Ltd v Neil Bartley and Others [2025] HCA 29.
[46] Ulan Coal Mines Limited v Honeysett and others [2010] FWAFB 7578 at [28].
[47] Paragraph 24 of the Applicant's Outline of Submissions in Reply, DHB, pages 71 & 72.
[50] ALH Group Pty Ltd t/a The Royal Exchange Hotel v Mulhall (2002) 117 IR 357, [50].
[51] ALH Group Pty Ltd t/a The Royal Exchange Hotel v Mulhall (2002) 117 IR 357, [50].
[52] ALH Group Pty Ltd t/a The Royal Exchange Hotel v Mulhall (2002) 117 IR 357, [51], Glenn Reseigh v Stegbar Pty Ltd [2020] FWCFB 533 at [54].
[53] Capacity was explained by a Full Bench of the Commission in Glenn Reseigh v Stegbar Pty Ltd [2020] FWCFB 533 at [42].
[54] Mark Bartlett v Ingleburn Bus Services Pty Ltd [2020] FWCFB 6429 at [19], Glenn Reseigh v Stegbar Pty Ltd [2020] FWCFB 533 at [55] - [56].
[58] Sydney Trains v Gary Hilder [2020] FWCFB 1373 at [26].
[59] Mark Bartlett v Ingleburn Bus Services Pty Ltd [2020] FWCFB 6429 at [25].
[60] Nguyen v Vietnamese Community in Australia t/a Vietnamese Community Ethnic School South Australia Chapter [2014] FWCFB 7198 at [9].
[61] Vennix v Mayfield Childcare Ltd [2020] FWCFB 550 at [20].
[63] He v Lewin [2004] FCAFC 161 at [58].
[64] Sprigg v Paul's Licensed Festival Supermarket (1988) 88 IR 21.
Printed by authority of the Commonwealth Government Printer
Mr Patrick Siriphone
Royal Institution of Charted Surveyors / RICS Australasia Pty Ltd [2025] FWC 2305
(1995) 185 CLR 410
(1992) 36 FCR 20
(1996) 69 IR 370
(2002) 117 IR 357
(1988) 88 IR 21