[2025] FWC 2527
General information, not legal advice.
Fair Work Commission
2025-08-28
Original judgment source is linked above.
The Applicant will need to file a Notice of discontinuance (Form F50) with the Commission, with a copy sent to the Respondent.
Generally, any correspondence or documents sent to the Commission must also be sent to the other party. The Commission may forward your correspondence and documents to the other party. If you are concerned about correspondence or a document being forwarded by the Commission, you should contact the Commission before sending it.
This concludes my role in the process. If any queries arise about implementing the terms of settlement, please contact the other party directly.
(a) during the conciliation the Applicant gave indications that she felt overwhelmed and unable to properly participate in the negotiations with the Respondent;
(b) the Applicant advised her ASU delegate and the Conciliator multiple times that she required more time to comprehend the information;
(c) the Applicant had a self-identified panic attack in the breakout room;
(d) the Respondent's representative queried in the conference whether the Applicant was employed and after having replied that she was not, the Applicant formed the view that the Respondent was now aware that the Applicant could not financially afford further legal advice or representation if the application proceeded to court;
(e) the Respondent's representative noted in the conciliation conference that the Respondent was 'comfortable enough and had sufficient evidence to prove me wrong' and were willing to proceed, which the Applicant considers having been a scare tactic;
(f) the Applicant felt coerced into accepting the settlement agreed by her ASU delegate;
(g) the Applicant does not recall questioning or being advised that there would be no cooling off period;
(h) the Applicant states that she was unaware that the settlement agreement would be considered a legally binding arrangement; and
(i) as a mother with five children and a mortgage, the Applicant said she was conflicted in what would be more beneficial to her financial capacity in regard to the importance of the statement of service and applying for new employment positions in comparison of being compensated for loss of past wages.
there are several categories into which such negotiations fall. In Masters v Cameron, the High Court held that a binding agreement could come about in the following manner:
...It may be one in which the parties have reached finality in arranging all the terms of their bargain and intend to be immediately bound to the performance of those terms, but at the same time propose to have the terms restated in a form which will be fuller or more precise but not different in effect. Or, secondly, it may be a case in which the parties have completely agreed upon all the terms of their bargain and intend no departure from or addition to that which their agreed terms express or imply, but nevertheless have made performance of one or more of the terms conditional upon the execution of a formal document. Or, thirdly, the case may be one in which the intention of the parties is not to make a concluded bargain at all, unless and until they execute a formal contract.
In each of the first two cases there is a binding contract: in the first case a contract binding the parties at once to perform the agreed terms whether the contemplated formal document comes into existence or not, and to join (if they have so agreed) in settling and executing the formal document; and in the second case a contract binding the parties to join in bringing the formal contract into existence and then to carry it into execution.[15]
Was a binding settlement agreement reached between the parties?
(1) Without limiting when the FWC may dismiss an application, the FWC may dismiss an application if:
(a) the application is not made in accordance with this Act; or
(c) the application has no reasonable prospects of success.
specified in s 587(1) of the Act. This much is clear from the words '[W]ithout limiting when the FWC may dismiss an application...'. However, even if the powers to dismiss were so limited it would not affect my conclusion that the Applicant's unfair dismissal application has no reasonable prospects of success. In Australia Postal Corporation v Gorman, Besanko J remarked:
31 An accord and satisfaction extinguishes any cause of action and replaces it with a new cause of action based on the agreement. A valid accord and satisfaction is not a discretionary factor relevant to subsequent litigation of the original claim: it is an answer to the claim.
33 There is nothing in the [Fair Work] Act which suggests that an accord and satisfaction should not be recognised...As I have said, an accord and satisfaction extinguishes the pre-existing cause of action and continued pursuit of an application based on such a cause of action is clearly capable of being considered frivolous or vexatious or without reasonable prospects of success. [20]

[2] [2017] FWCFB 4562 ('Singh').
[3] Ibid [46] citing Pavlovic v Universal Music Australia Pty Limited [2015] NSWCA 313 [15] ('Pavlovic').
[4] Pavlovic [15] (n 3) citing Masters v Cameron [1954] HCA 72; (1954) 91 CLR 353, 362 ('Masters').
[5] Pavlovic [15] (n 3) citing Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540, 550 and Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309, 334, 337.
[6] Singh (n 2) [47] citing, for contrast, Brambles Holdings Limited v Bathurst City Council [2001] NSWCA 61; (2001) 53 NSWLR 153.
[7] Singh (n 2) [48] citing Redowood Pty Ltd v Mongoose Pty Ltd [2005] NSWCA 32, [84] ('Redowood').
[8] Singh (n 2) [48] citing Boreland v Docker [2007] NSWCA 94, [76]-[78] ('Boreland').
[9] Singh (n 2) [48] citing Boreland (n 8) [76] and Cavallari v Premier Refrigeration Co Pty Ltd [1952] HCA 26; (1952) 85 CLR 20, 26-7.
[10] Singh (n 2) [48] citing Brookfield Australia Investments Limited v Lucas Stuart Pty Limited [2012] NSWSC 1130, [34] ('Brookfield').
[11] Singh (n 2) [48] citing Brookfield (n 10) [30]-[31].
[12] Singh (n 2) [48] citing Brookfield (n 10) [35], quoting Howe v Connell [1997] NSWSC 432 ('Howe'), citing Stevenson v McLean (1880) 5 QBD 346.
[13] Singh (n 2) [49] quoting Redowood (n 7) [76], citing Carter v Hyde [1923] HCA 36; (1923) 33 CLR 115.
[14] Singh (n 2) citing Capital Securities No. 1 Pty Ltd v Saliba [2016] NSWSC 1093, [77].
[16] Singh (n 2) [53] citing Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622.
[17] Singh (n 2) citing Zoiti-Licastro v Australian Taxation Office (2006) 154 IR 1, [10]-[12] and Howe (n 12).
[18] See for example: Chapman v Ignis Labs Pty Ltd [2020] FWCFB 3849 [29].
[19] [1954] HCA 72; (1954) 91 CLR 353, 360.
[20] [2011] FCA 975; (2011) 196 FCR 126, 133-4 [31], [33].
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Samantha Foster
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(1954) 91 CLR 353
(1985) 2 NSWLR 309
(2001) 53 NSWLR 153
(1988) 18 NSWLR 540
(1952) 85 CLR 20
(1923) 33 CLR 115
(1986) 40 NSWLR 622
(2006) 154 IR 1
(2011) 196 FCR 126