[2025] FWC 1301
General information, not legal advice.
Fair Work Commission
2025-05-23
As Ryan J
Original judgment source is linked above.
s.394 - Unfair dismissal
Application for an unfair dismissal remedy - genuine redundancy - consultation requirements not complied with - dismissal unfair - compensation ordered
Is there a genuine redundancy under s.389(1) of the Act?
There can be little doubt that s 389 of the FW Act - and, more broadly, the significance of "genuine redundancy" to s 385(d) - was intended to narrow the circumstances in which an employee might be said to have been "unfairly dismissed"; and, thereby, to afford employers a defence in circumstances involving dismissals for operational reasons (as opposed to reasons of conduct or capacity). A dismissal that is a "case of genuine redundancy" is immune from relief under Pt 3‑2. That is so even if it might unambiguously qualify as "harsh, unjust or unreasonable"[2]
A case of genuine redundancy may arise if a dismissal is the consequence of changes in the operational requirements of an employer's enterprise. The FW Act does not contemplate any inquiry into the reasonableness of such changes, neither "in all [of] the circumstances" or at all. Subject to s 389(1)(b) and 389(2), any change in operational requirements will suffice.[6]
"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.
Referencing the Fair Work Act 2009 - Section 389, I believe the redundancy was non-genuine as the tasks I performed in the role of Customer Service Officer were not distributed to other team members and the title of Customer Service Officer consequentially retired, instead it was reallocated in its entirety to a colleague demoted from his previous position of Fleet Supervisor, and in November 2024 a second person for the role was sought out via Seek and Vision's Facebook page. This would indicate that my role was (and is!) still very much active and needs to be done by someone.
1548. The following are possible examples of a change in the operational
"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 principles concerning the interpretation and application of s.389(2) have been stated in two Full Bench decisions, Ulan Coal Mines Ltd v Honeysett and Technical and Further Education Commission t/a TAFE NSW v Pykett. Those principles were summarised in Huang v Forgacs Engineering Pty Limited as follows:
(1) The exclusion in s.389(2) poses a hypothetical question which must be answered by reference to all of the relevant circumstances.
(2) The question is concerned with circumstances which pertained at the time of the dismissal.
(3) In order to conclude that it would have been reasonable to redeploy the dismissed person, the Commission must find, on the balance of probabilities, that there was a job or a position or other work within the employer's enterprise (or that of an associated entity) to which it would have been reasonable in all the circumstances to redeploy the dismissed employee.
(4) A number of matters are capable of being relevant in answering the question, including the nature of any available position, the qualifications required to perform the job, the employee's skills, qualifications and experience, the location of the job and the remuneration which it offered."
Was the dismissal harsh, unjust or unreasonable?
(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);
Another reason I believe Sarah was made redundant due to her pregnancy was on approximately 1/10/24, I had walked into Rob's office when Mark (Director) and Rob were having a meeting regarding employing a sales manager and I heard Mark saying, "we need to make sure we don't employ anyone that could get pregnant and or have any health issues".
(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 the 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.
"390 When the FWC may order remedy for unfair dismissal
(1) Subject to subsection (3), the FWC may order a person's reinstatement, or the payment of compensation to a person, if:
(a) the FWC is satisfied that the person was protected from unfair dismissal (see Division 2) at the time of being dismissed; and
(b) the person has been unfairly dismissed (see Division 3).
(2) The FWC may make the order only if the person has made an application under section 394.
(3) The FWC must not order the payment of compensation to the person unless:
(a) the FWC is satisfied that reinstatement of the person is inappropriate; and
(b) the FWC considers an order for payment of compensation is appropriate in all the circumstances of the case."
(1) An order for the payment of compensation to a person must be an order that the person's employer at the time of the dismissal pay compensation to the person in lieu of reinstatement.
(2) In determining an amount for the purposes of an order under subsection (1), the FWC must take into account all the circumstances of the case including:
(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.
(3) If the FWC is satisfied that misconduct of a person contributed to the employer's decision to dismiss the person, the FWC must reduce the amount it would otherwise order under subsection (1) by an appropriate amount on account of the misconduct.
(4) The amount ordered by the FWC to be paid to a person under subsection (1) must not include a component by way of compensation for shock, distress or humiliation, or other analogous hurt, caused to the person by the manner of the person's dismissal.
(5) The amount ordered by the FWC to be paid to a person under subsection (1) must not exceed the lesser of:
(a) the amount worked out under subsection (6); and
(b) half the amount of the high income threshold immediately before the dismissal.
(6) The amount is the total of the following amounts:
(ii) to which the person was entitled; (whichever is higher) for any period of employment with the employer during the 26 weeks immediately before the dismissal; and
(b) if the employee was on leave without pay or without full pay while so employed during any part of that period - the amount of remuneration taken to have been received by the employee for the period of leave in accordance with the regulations."
"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). I am also required to consider the length of service with the employer[17] and the ability to find a new role as a relevant factor in calculating compensation per s392(2).
Step 2: Deduct monies earned since termination.[18]
Step 3: Discount the remaining amount for contingencies.[19]
Step 4: Calculate the impact of taxation to ensure that the employee receives the actual amount they would have received if they had continued in their employment."
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 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."
[2] Helensburgh Coal Pty Ltd v Bartley and Anor [2024] FCAFC 45 at 55 ("Helensburgh Coal Pty Ltd").
[4] Ibid s389(1)(b)
[5] Ibid s389(2)(a)-(b).
[6] Helensburgh Coal Pty Ltd at [58].
[7] Jones v Department of Energy and Minerals [1995] IRCA 292 (16 June 1995), [(1995) 60 IR 304 at p. 308 (Ryan J)]; cited with approval in Ulan Coal Mines Limited v Howarth and others [2010] FWAFB 3488 (Boulton J, Drake SDP, McKenna C, 10 May 2010) at para. 17, [(2010) 196 IR 32] ("Ulan Coal Mines Limited").
[8] Kekeris v A. Hartrodt Australia Pty Ltd T/A a.hartrodt [2010] FWA 674
[9] Helensburgh Coal Pty Ltd v Bartley and Anor [2021] FWCFB 2871 at [54].
[10] Selvachandran v Peteron Plastics Pty Ltd [1995] IRCA 333; (1995) 62 IR 371, 373.
[11] [2021] FWC 4 at 118.
[12] Commonwealth of Australia (Australian Taxation Office) t/a Australian Taxation Office v Shamir [2016] FWCFB 4185, [46], citing Allied Express Transport Pty Ltd v Anderson (1998) 81 IR 410, 413.
[13] Applicant Submissions dated 24 February 2025
[14] English v Tee Ink Pty Ltd [2023] FWC 2805 at [72], citing Gomes v OE & DR Pope Pty Ltd T/A Pope Packaging at [58].
[16] Bank of Sydney Ltd T/A Bank of Sydney v Repici [2015] FWCFB 7939.
[17] Fair Work Act 2009 (Cth) s392(2)(b) -(c) and s392(2)(g).
[18] Ibid s392(2)(e).
[19] Ibid s392(2)(a), (d) and (f).
[20] Applicant Submissions dated 24 February 2025.
Printed by authority of the Commonwealth Government Printer
Sarah Wilson
Brisbane Crane Trucks Pty Ltd [2025] FWC 1301
(1995) 60 IR 304
(2010) 196 IR 32
(1995) 62 IR 371
(1998) 81 IR 410
(1998) 88 IR 21