Mark Howlett v Burst Group Pty Ltd

Case [2024] FWC 3478


[2024] FWC 3478

FAIR WORK COMMISSION

REASONS FOR DECISION

Fair Work Act 2009

s.394—Unfair dismissal

Mark Howlett
v

Burst Group Pty Ltd

(U2024/10994)

DEPUTY PRESIDENT BELL

MELBOURNE, 24 DECEMBER 2024

Application for an unfair dismissal remedy - dismissal not unfair- redundancy - application dismissed.

On 13 September 2024, Mr Mark Howlett (Applicant) made an application (the Application) to the Fair Work Commission (Commission) for relief from unfair dismissal under s.394 of the Fair Work Act 2009 (the Act). The Applicant alleges he was unfairly dismissed by Burst Group Pty Ltd (Respondent) with the dismissal taking effect on 10 September 2024.

  1. The Respondent agrees the effective date of dismissal was 10 September 2024 but denies the dismissal was unfair. There was no dispute the application was made within time.

  1. In its Form F3 Employer response, the Respondent raised a jurisdictional objection that the Applicant’s dismissal was a case of genuine redundancy (s.389). The response also states that at the time of the Applicant’s dismissal the Respondent had 8 employees, making it a small business employer.

  1. For the reasons given more fulsomely on transcript and subsequently circulated to the parties, I record that Mr Howlett was dismissed because his job was no longer required to be performed because of operational requirements of the respondent. Mr Howlett’s various duties and functions were distributed to other employees. The reason for the redundancy was explained by Mr Coates, the owner of the business and whose evidence I accept. The heart of that reason was due to a business downturn and the need to find cost savings. For those reasons and following Mr Coates’ evidence, I also find that it was not otherwise reasonable in the circumstances for Mr Howlett to have been redeployed. Notwithstanding those findings, the dismissal was not a “genuine redundancy” for the purposes of s.389 of the Act because the requirements for ‘written’ consultation under the relevant Award that applied to Mr Howlett’s employment were not met. There was consultation, but not in writing for the purposes of the Award.

  1. The respondent was a small business but, in the circumstances, the Small Business Fair Dismissal Code was not applicable, because the dismissal did not pertain to the performance or conduct of Mr Howlett, neither of which were in issue. The dismissal was in no way a reflection on the quality of Mr Howlett’s work.

  1. That leaves the dismissal to be assessed against the requirements of s.387 to determine if the dismissal was harsh, unjust or unreasonable. While the requirements of s.389 were not met, the dismissal was clearly a result of a bona fide redundancy and there was no opportunity for redeployment. There was consultation, just not in writing. While aspects of that consultation were limited, the evidence before me makes it perfectly clear that no different outcome would have followed if different procedures were adopted. In all the circumstances of the matter, I was not satisfied that the dismissal was harsh, unjust or unreasonable within the meaning of s.387 of the Act. Even if I concluded differently by taking a different view about the level of consultation, reinstatement is plainly inappropriate given the business circumstances of the Respondent and I would not make any order for compensation because the same outcome would have been arrived at.

  1. Accordingly, not being satisfied that the dismissal was harsh, unjust or unreasonable, the requirements of s.385 were not met and the application must be dismissed.

  1. An order[1] dismissing the Application was issued on 3 December 2024.

DEPUTY PRESIDENT

Appearances:

M. Howlett on his own behalf.
L. Coates from the Respondent.

Determinative Conference details:

2024.
Melbourne:
December 3.


[1] PR781976.

Printed by authority of the Commonwealth Government Printer

<PR782420>

Details
AGLC
Mark Howlett v Burst Group Pty Ltd [2024] FWC 3478
Case
[2024] FWC 3478
Decision Date

CaseChat Overview and Summary

The case of Mark Howlett v Burst Group Pty Ltd involved an application for relief from unfair dismissal under section 394 of the Fair Work Act 2009. Mark Howlett (the Applicant) alleged that he was unfairly dismissed by Burst Group Pty Ltd (the Respondent), with the dismissal taking effect on 10 September 2024. The Respondent agreed on the effective date of dismissal but denied the dismissal was unfair. The Respondent argued that the dismissal was a case of genuine redundancy under section 389 of the Act and that the dismissal was due to a business downturn necessitating cost savings.

The legal issues before the Fair Work Commission included whether the dismissal was a genuine redundancy as defined under section 389 of the Act, and if not, whether the dismissal was harsh, unjust or unreasonable under section 387. The Respondent contended that the dismissal was a genuine redundancy, and the Applicant argued that the dismissal was unfair. The Commission needed to determine if the dismissal was procedurally correct and whether the dismissal was harsh, unjust or unreasonable.

The Fair Work Commission found that the dismissal was not a genuine redundancy because the necessary written consultation requirements under the relevant Award were not met, although there was consultation, it was not in writing. However, the dismissal was due to a bona fide redundancy as a result of a business downturn, and there was no opportunity for redeployment. The Commission noted that the dismissal was not due to the Applicant’s performance or conduct, and it was not a reflection on his work quality. The Commission concluded that while the consultation process was limited, no different outcome would have followed if different procedures were adopted. Therefore, the dismissal was not harsh, unjust or unreasonable under section 387 of the Act. As the dismissal did not meet the requirements of section 385, the application was dismissed.

The Fair Work Commission issued an order dismissing the Application on 3 December 2024, and no orders for reinstatement or compensation were made.

Orders

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Background

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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