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Unfair Dismissals

Unfair Dismissal: Mark Baldwin v Scientific Management Associates (Operations) Pty Ltd [2014] FWC 5174

The Fair Work Commission (FWC) has found that the summary dismissal of an employee for swearing at a manager was not harsh, unjust or unreasonable. The FWC differentiated between swearing in the workplace and swearing directly at a co-worker. The employee’s dismissal was justified in the circumstances despite the fact that using expletive language was the norm in the workplace.

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Unfair Dismissal: Susanna Ma v Expeditors Pty Limited [2014] NSWSC 859

Compensation was awarded to Ms Susanna Ma, a former employee of Expeditors Pty Ltd because she was not given reasonable notice of the termination of her employment contract. 


Susanne Ma v Expeditors Pty Ltd [2014] NSWSC 859

Decision

Compensation has been awarded to Ms Susanna Ma, a former employee of Expeditors Pty Ltd (Expeditors) after she was not given reasonable notice of the termination of her employment contract by her employer Expeditors Pty Ltd (Expeditors).

Accusation of Misconduct

Expeditors argued that the employee was involved in misconduct that justified immediate termination. This allegation of misconduct was the Ms Ma’s failure to disclose a conflict of interest or related party transaction when she executed financial and corporate certificates and authorised invoices for payment of services to a cleaning company in which her brother had a financial interest.

The Court found that any potential conflict of interest was removed by the Expeditors conduct in engaging with the Ms Ma’s brother during negotiations for the cleaning contract, and in having the employee authorise invoices.

As misconduct was not found, the employer was required to give reasonable notice on termination of employment. As there was no express term in the contract of employment regarding notice of termination and this meant Expeditors was required to provide reasonable notice of termination.

Ms Ma had argued that reasonable notice of termination was 12 months. The Court determined reasonable notice of termination to be ten months. The key factors relevant to this determination were the following:

  • Ms Ma had 24 years ‘service.
  • Ms Ma was 49 years old at the date of termination.
  • Ms Ma had significant responsibility (as reflected in her remuneration); and
  • It was likely to take Ms Ma an extensive period of time to obtain equivalent alternative employment.

There was substantial evidence to show that Ms Ma took reasonable steps to search for alternative employment so there had been no failure to mitigate loss. 

Long Service Leave

Ms Ma also claimed that the accrued long service leave paid to her should have included amounts for substantial bonuses she had received. Expeditors argued that Ms Ma was not entitled to bonuses as she earned over the threshold amount of $144,000 when superannuation contributions were taken into account. The Court found in favour of Ms Ma. The employment contract did not fix an ordinary time rate of pay and so the employee’s ordinary pay is considered to be the average weekly wage earned by the worker. The Court held, as a matter of statutory interpretation that weekly wage does not include superannuation.

 * PCC Lawyers are a team of employment practitioners based in Sydney, with many years of combined knowledge and experience in workplace law, industrial relations, workplace investigations and training.  They provide a high standard of excellence and an exceptional level of personal service to a variety of clients in the Sydney metropolitan area, Central Coast, regional NSW and interstate.

Unfair Dismissal: Read v Gordon Square Child Care Centre Inc

This case concerned a claim of unfair dismissal arising from a child care workers apparent failure to provide adequate supervision of a child in a child care setting when the worker turned her attention to a ringing phone.  The Full Bench, on appeal, found that the child care worker’s consideration of the phone call did not amount to a lack of ‘adequate supervision’ for the child and, accordingly, found that her dismissal had been unfair.

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Unfair Dismissal: Nangle v Kimberley Division of General Practice T/A Boab Health Services

A recent decision of Fair Work Australia has highlighted the limits of the Commonwealth's legislative powers in relation to workplace laws. The previous Coalition government extended the scope of workplace laws by utilizing the corporations power to legislate workplace laws in relation to corporations falling within the scope of the constitutional corporations power (so called 'Constitutional Corporations'). This extension survived a High Court challenge and continues in the Fair Work Act, where national system employers include constitutional corporations. National system employers are subject to unfair dismissal laws and obligations.

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Unfair Dismissal: De Arman v Soldiers Point Bowling Club

This case concerned a claim of unfair dismissal arising from allegations about mishandling cash. However, the monitoring and handling procedures of the Respondent were insufficient to sustain the complaint. This case demonstrates the high standard that employers must meet before electing to summarily dismiss an employee for fraud or theft.

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