Scott Harrison v FLSmidth Pty Limited T/A FLSmidth Pty Limited

Scott Harrison commenced proceedings in the Fair Work Commission against FLSmidth Pty Limited T/A FLSmidth Pty Limited, seeking relief for unfair dismissal. Mr Harrison was employed as a service technician and was demoted to a role that involved less responsibility, resulting in a significant decrease in his remuneration. FLSmidth submitted that Mr Harrison was not dismissed within the meaning of the Fair Work Act 2009 (Cth). The central legal issue was whether the demotion constituted a dismissal for the purposes of the Act.

The Commission found that the demotion was significant and that Mr Harrison's employment relationship was ongoing. The change in his role and remuneration amounted to a dismissal. The Commission held that the demotion effectively terminated the original employment contract and replaced it with a new contract of employment. This was a dismissal within the meaning of s 386 of the Act, as the demotion resulted in a substantial change to the terms of employment. The Commission further found that the dismissal was unfair because FLSmidth failed to follow a genuine process of consultation and did not provide Mr Harrison with a valid reason for the demotion.

The Fair Work Commission ordered that Mr Harrison be reinstated to his former position, with back pay, and awarded him additional compensation for the distress and humiliation caused by the unfair dismissal. The order also included a requirement for FLSmidth to provide a written apology to Mr Harrison. The decision underscores the importance of following proper procedural steps and providing valid reasons when making significant changes to an employee's role and remuneration.