Blog Post:

The High Cost of Skipping Due Process: A Real FWC Case Breakdown

A recent decision by the Fair Work Commission (FWC) serves as a stark reminder to employers: even when an employee engages in misconduct, failing to follow proper disciplinary procedures can lead to costly consequences.

Overview of the Case

In September 2024, a worker at Wiluna Mine in Western Australia was involved in a physical altercation with a colleague. The incident began when the worker confronted his colleague about driving at excessive speed, leading to a heated exchange.

Believing he was about to be struck, the worker punched his colleague and applied a chokehold for approximately twenty seconds. The altercation was partially captured on a truck’s front-mounted camera.

The employer issued a show cause letter on 23 September, a public holiday, requiring a response by the following day. When the worker requested an extension to seek legal advice, it was denied.

Subsequently, the worker was instructed to travel from the mine site to Perth and then make his own way home to Queensland, incurring personal expenses despite contractual obligations for the employer to cover travel costs.

FWC’s Decision and Rationale

The FWC acknowledged that the worker’s actions provided a valid reason for dismissal due to the excessive nature of the chokehold. However, it found the dismissal to be harsh, unjust, and unreasonable, citing:

Insufficient time for the worker to respond to allegations.
Denial of the worker’s request for an extension to seek legal advice.
Failure to adhere to contractual obligations regarding travel arrangements.
The summary nature of the dismissal without proper procedural fairness.

As a result, the FWC awarded the worker $2,890.08 in compensation, factoring in reductions for his misconduct and failure to mitigate losses.

Having a valid reason for dismissal does not override the obligation to follow fair process.” – Fair Work Commission

Key Takeaways for Employers

Procedural Fairness is Crucial: Even with a valid reason for dismissal, employers must ensure fair procedures are followed, including providing adequate time for employees to respond to allegations and honouring contractual obligations.
Documentation Matters: Maintain clear records of all performance and disciplinary actions, communications, and decisions to demonstrate compliance with fair work practices.
Seek Professional Guidance: Navigating complex disciplinary situations requires expertise to mitigate legal risks and ensure compliance with employment laws.

How Strategic HR Australia Can Assist

Strategic HR Australia specialises in guiding employers through the intricacies of performance management and disciplinary procedures.

Our services include:

Policy Development: Crafting clear, compliant disciplinary policies tailored to your organisation.
Training: Educating management on fair work practices and procedural fairness.
Case Management: Providing support during performance and disciplinary actions to ensure legal compliance and minimise risks.

By partnering with SHR, employers can confidently manage workplace issues, uphold fair work standards, and protect their organisations from potential legal challenges.

Facing a tricky misconduct issue? Let Strategic HR guide you through compliant and fair outcomes. Contact us today or book a free consultation.