Employer argues termination was justified after suffering from financial loss
The Fair Work Commission (FWC) recently dealt with a worker’s claim that her dismissal was unfair because it didn’t comply with the consultation process of her award. The employer, on the other hand, said that her dismissal was a case of genuine redundancy.
The worker, Rebecca Ringuet, filed a request on July 29, 2023, seeking redress for unfair dismissal from her employer, Bioworx Pty Ltd.
She started her role as an administration assistant with the employer on January 17, 2022, and was made redundant on July 14, 2023.
The employer raised a jurisdictional objection, claiming genuine redundancy. However, the worker contends that the redundancy lacked genuineness due to the employer's failure to comply with the consultation provisions of her award.
The employer cited the current economic climate and a downturn in sales and revenue as reasons for the redundancy, asserting that the worker's position was no longer necessary and the costs with current staffing arrangements were unsustainable.
Employer’s downturn in sales
During the hearing, evidence presented by the employer highlighted a significant sales downturn over 12 months, justifying the worker's redundancy. The worker acknowledged the downturn but disputed the genuineness of the redundancy.
The employer needed to make one of its three administrative positions redundant and was substantiated through the financial information provided by the employer.
The employer had a genuine reason for redundancy and substantiated this reason after assessing the financial performance of the business. The FWC said the worker “should have been provided with the opportunity to be informed of the redundancy before this decision was made.”
“It is understandable in the [employer’s] view that as there was no other position that the [worker] could be redeployed to, and the consultation process would have not changed the outcome,” the FWC said.
“However, the redundancy process is clear in the award that the notice of consultation should have been provided in writing. The failure to comply with the redundancy procedure does make the dismissal harsh, unjust or unreasonable.”
“It was established that the employer did not fulfill the obligation to consult about redundancy as required by a clause on her award. Although a termination letter was issued to the worker on July 14, 2023, verbal discussion alone did not meet the consultation requirements.”
Consequently, the employer failed to comply with proper consultation procedures before dismissal, rendering the redundancy not genuine under the FW Act.
