[2025] FWC 2208
General information, not legal advice.
Fair Work Commission
2025-07-30
Original judgment source is linked above.
The Applicant undertook tasks under a remote working agreement, that was not bound to a specific location. During his tenure the Applicant has been required to travel and work internationally as required by his role. This agreement is replicated by many Company employees, with the Marketing Manager working offsite 4 days per week and the Sales Manager working remotely from Brisbane. It is also evidenced by way of the interim CEOs requests to adjourn the current proceedings due to work travel commitments.
Whilst the photos provided by the Respondent evidence that the Applicant worked extended and irregular hours, took breaks as required and worked remotely, it does not demonstrate that the Applicant was on leave without authorisation."
(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.
Did the employer no longer require the employee's job to be done by anyone because of changes in the operational requirements of the employer's enterprise?
"[17] It is noted that the reference in the statutory expression is to a person's 'job' no longer being required to be performed. As Ryan J observed in Jones v Department of Energy and Minerals [1995] IRCA 292; (1995) 60 IR 304 a job involves 'a collection of functions, duties and responsibilities entrusted, as part of the scheme of the employees' organisation, to a particular employee' (at p.308). His Honour in that case considered a set of circumstances where an employer might rearrange the organisational structure by breaking up the collection of functions, duties and responsibilities attached to a single position and distributing them among the holders of other positions, including newly-created positions. In these circumstances, it was said that:
'What is critical for the purpose of identifying a redundancy is whether the holder of the former position has, after the re-organisation, any duties left to discharge. If there is no longer any function or duty to be performed by that person, his or her position becomes redundant...' (at p.308)
This does not mean that if any aspect of the employee's duties is still to be performed by somebody, he or she cannot be redundant (see Dibb v Commissioner of Taxation (2004) FCR 388 at 404-405). The examples given in the Explanatory Memorandum illustrate circumstances where tasks and duties of a particular employee continue to be performed by other employees but nevertheless the 'job' of that employee no longer exists.
[18] In Kekeris v A. Hartrodt Australia Pty Ltd[9], Senior Deputy President Hamberger considered whether a dismissal resulting from the restructure of a supervisory team was a case of genuine redundancy. As a result of the restructure, four supervisory team leader positions were replaced by three team leader positions. The Senior Deputy President said:
'When one looks at the specific duties performed by the applicant prior to her termination they have much in common with those of two of the new positions in the new structure. The test is not however whether the duties survive. Paragraph 1548 of the explanatory memorandum makes clear that it can still be a 'genuine redundancy' where the duties of a previous job persist but are redistributed to other positions. The test is whether the job previously performed by the applicant still exists.'"
"it is necessary to state at the outset that consideration of whether the employer no longer required the person's job to be performed by anyone because of changes in the operational requirements of the enterprise does not involve a merits review of the employer's decision to make the person's job redundant. It is not to the point that it may have been open to the employer to make a different operational decision which may have allowed the relevant employee's job to be retained. As was stated in Low v Menzies Property Services Pty Ltd, "Whether it was objectively fair or justifiable to decide to abolish a position is beside the point, as long as the employer acted as it did because of changes in its operational requirements."[11] What s.389(1)(a) requires is for findings of fact to be made as to whether, firstly, the employer has made the decision that the relevant employee's job is no longer required to be performed by anyone and, secondly, whether that decision was made because of changes in the operational requirements of the enterprise. If there was an ulterior motive for the decision - that is, if the real reason for the decision did not genuinely relate to any change in operational requirements, whatever the ostensible reason may have been - then it will not be possible to make the second finding of fact. However once these findings of fact are made, the element of the genuine redundancy definition contained in s.389(1)(a) is satisfied and no further inquiry is necessary."
"It is not the function of the Commission, in determining whether a dismissal is a case of genuine redundancy, to form a view about the merits of the decision to make a position redundant. Whether it was objectively fair or justifiable to decide to abolish a position is beside the point, as long as the employer acted as it did because of changes in its operational requirements".
Has the employer consulted in accordance with the consultation provisions of a relevant modern award or enterprise agreement?
41.1 If an employer makes a definite decision to make major changes in production, program, organisation, structure or technology that are likely to have significant effects on employees, the employer must:
(a) give notice of the changes to all employees who may be affected by them and their representatives (if any); and
(b) discuss with affected employees and their representatives (if any):
(iii) measures to avoid or reduce the adverse effects of the changes on employees; and
(c) commence discussions as soon as practicable after a definite decision has been made.
41.2 For the purposes of the discussion under clause 41.1(b), the employer must give in writing to the affected employees and their representatives (if any) all relevant information about the changes including:
41.3 Clause 41.2 does not require an employer to disclose any confidential information if its disclosure would be contrary to the employer's interests.
41.4 The employer must promptly consider any matters raised by the employees or their representatives about the changes in the course of the discussion under clause 41.1(b).
41.5 In clause 41 significant effects, on employees, includes any of the following:
(b) major changes in the composition, operation or size of the employer's workforce or in the skills required; or
(c) loss of, or reduction in, job or promotion opportunities; or
(f) the need for employees to be retrained or transferred to other work or locations; or
41.6 Where this award makes provision for alteration of any of the matters defined at 41.5, such alteration is taken not to have significant effect.
Was it reasonable in all the circumstances for the employee to be redeployed in the employer's enterprise?
Was the dismissal a case of genuine redundancy?
Was the dismissal harsh, unjust or unreasonable?
'... 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.'
Notification of the valid reason and opportunity to respond - s.387(b) and (c)
"[73] As a matter of logic procedural fairness would require that an employee be notified of a valid reason for their termination before any decision is taken to terminate their employment in order to provide them with an opportunity to respond to the reason identified. Section 170(3)(b) and (c) would have very little (if any) practical effect if it was sufficient to notify employees and give them an opportunity to respond after a decision had been taken to terminate their employment. Much like shutting the stable door after the horse has bolted."[25]
Unreasonable refusal by the employer to allow a support person - s.387(d)
Warnings regarding unsatisfactory performance - s.387(e)
Impact of the size of the Respondent on procedures followed (s.387(f)), and the absence of dedicated human resources management specialist/expertise on procedures followed (s.387(g))
Other relevant matters - s.387(h)
Remuneration received, or likely to be received (s392(2)(c))
Remuneration earned and income likely to be earned (s392(2)(e) and (f))
Length of service (s392(b))
Viability (s392(a))
Mitigation efforts (s392(d))
Other relevant matters (s392(g))
Shock, distress etc (s392(4))
B Sundaraj of Sundaraj & Ker for Powerstack Australia Pty Limited.
[1] Paul Mencev v AB Phillips Pty Ltd [2024] FWC 2122 and Kaufmann v Jones Lang LaSalle (Vic) Pty Ltd T/A JLL [2017] FWC 2623.
[2] See Explanatory Memorandum to the Fair Work Bill 2008 at paragraph 1548.
[4] Dibb v Commissioner of Taxation [2004] FCAFC 126; (2004) 136 FCR 388 at 404-5.
[5] Kekeris v A. Hartrodt Australia Pty Ltd [2010] FWA 674 at [27].
[6] Nettlefold v Kym Smoker Pty Ltd [1996] IRCA 496 at p. 373.
[13] Explanatory Memorandum to the Fair Work Bill 2008 at paragraph 1551.
[14] Technical and Further Education Commission T/A TAFE NSW v Pykett [2014] FWCFB 714 at [36].
[16] (1995) 185 CLR 410 at 465 per McHugh and Gummow JJ.
[17] 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].
[18] Selvachandran v Peteron Plastics Pty Ltd [1995] IRCA 333; (1995) 62 IR 371, 373.
[20] Walton v Mermaid Dry Cleaners Pty Ltd [1996] IRCA 267; (1996) 142 ALR 681, 685.
[22] Crozier v Palazzo Corporation Pty Ltd (2000) 98 IR 137, 151.
[26] Gibson v Bosmac Pty Ltd [1995] IRCA 222; (1995) 60 IR 1, 7.
[27] RMIT v Asher [2010] FWAFB 1200; (2010) 194 IR 1, 14-15.
[28] McCarron v Commercial Facilities Management Pty Ltd t/a CFM Air Conditioning Pty Ltd [2013] FWC 3034, [32].
[29] Fastidia Pty Ltd v Goodwin Print S9280 (AIRCFB, Ross VP, Williams SDP, Blair C, 21 August 2000), [43]-[44].
Printed by authority of the Commonwealth Government Printer
Nathan Leslie Giblett
Powerstack Australia Pty Limited [2025] FWC 2208
(1995) 60 IR 304
(1995) 185 CLR 410
(1995) 62 IR 371
(1996) 142 ALR 681
(1995) 60 IR 1
(2010) 194 IR 1
(2000) 98 IR 137