Mr Demesw Wederay v Airline Cleaning Services Pty Ltd T/A Cabin Services Australia

Mr Demesw Wederay applied for costs under section 400A of the Fair Work Act 2009 against his former employer, Airline Cleaning Services Pty Ltd T/A Cabin Services Australia. The dispute arose from an unfair dismissal claim which the employer had unsuccessfully defended in the Federal Circuit and Family Court of Australia. The employer sought the costs of defending the claim after the court found the dismissal was harsh, unjust, or unreasonable and ordered compensation to Mr Wederay.

The primary legal issue the court had to decide was whether the employer's decision not to accept the pre-hearing settlement offers made by Mr Wederay was an unreasonable act or omission. The employer argued that their position was not unreasonable as it was consistent with the evidence and instructions provided by their solicitors. The court needed to determine if the employer's decision was unreasonable and whether the exercise of discretion under section 400A was appropriate.

The court found that the employer's position, as adopted and advised by their solicitors, was not unreasonable. It was consistent with the evidence and instructions provided. Given this, the court did not exercise its discretion to order the employer to pay Mr Wederay's costs. The application for costs was dismissed.