| [2025] FWC 1841 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.394—Unfair dismissal
Thomas Erdos
v
Smart Health Australia
(U2024/2401)
| DEPUTY PRESIDENT O’NEILL | MELBOURNE, 30 JUNE 2025 |
Application for an unfair dismissal remedy – voluntary liquidation – dismissal under s.587(1)(c) at the Commission’s initiative – application has no reasonable prospects of success.
On 7 March 2024, Mr Thomas Erdos applied to the Fair Work Commission for a remedy for unfair dismissal under s.394 of the Fair Work Act 2009, naming Smart Health Australia as the Respondent.
On 12 March 2024, Ms Mak wrote to the Commission on behalf of the Respondent, notifying the Commission that the Respondent had been placed into liquidation on 8 March 2024. A Notice of Appointment as Liquidator published on the ASIC Notices Databases, confirmed this.
On 10 May 2024, Mr Erdos was advised in correspondence from the Commission of these developments. He was referred to s.500(2) of the Corporations Act 2001 which provides that “After the passing of the resolution for voluntary winding up, no action or other civil proceeding is to be proceeded with or commenced against the company except by leave of the Court and subject to such terms as the Court imposes.” Mr Erdos was advised that his application could not proceed unless he obtained leave of the Court and was asked to confirm by Friday, 24 May 2024, whether he intended to seek leave of the Court. No response was received from Mr Erdos.
On 18 June 2024 Mr Erdos was again advised in correspondence that he would need to make an application to the appropriate court to seek leave, and that the matter cannot proceed except by leave of the Court. The correspondence advised him that “no action can or will be taken by the Commission in relation to your unfair dismissal application unless you obtain leave of the court.” On 18 June 2024, Deputy President Clancy stayed the matter.
Further correspondence to Mr Erdos sent on 13 March 2025 directed him to advise by Thursday, 20 March 2025 whether he had, or will be, seeking leave of the Court. Mr Erdos was advised that if no response was received, his unfair dismissal application may be dismissed without further notice.
No response was received by 20 March 2025 and on 8 April 2025 my Chambers attempted to call Mr Erdos. The Applicant answered the call and advised he was unable to take the call. Further correspondence to Mr Erdos sent on 6 June 2025, directed him to advise by 13 June 2025 whether he had, or will be, seeking leave of the Court. Mr Erdos was advised that if no response was received, his unfair dismissal application may be dismissed without further notice.
It is well-established that the Commission is not a Court and is therefore unable to grant the leave required under s.500(2) of the Corporations Act.[1] I am also satisfied that an application pursuant to s.394 of the Act falls within the meaning of “civil proceedings” in s.500(2) of the Corporations Act.[2] I am satisfied that Mr Erdos’ application cannot proceed any further with the Commission except by leave of the Court.
I consider it appropriate to dismiss the application pursuant to s.587(1)(c) of the Act. I do so on the basis that I consider the application has no reasonable prospects of success. Mr Erdos has been on notice for an extended period of a significant obstacle that prevents him from continuing his case – the need to obtain leave of a Court under s.500(2) of the Corporations Act. He has not responded to the Commission’s correspondence. Accordingly, I dismiss Mr Erdos’ application pursuant to s.587(1)(c) of the Act. I make the following order:
1. The application under s.394 of the Fair Work Act 2009 (Cth) made by Mr Erdos on 7 March 2024, is dismissed.
DEPUTY PRESIDENT
[1] Smith v Trollope Silverwood & Beck Pty Ltd (2003) 142 IR 137.
[2] Silalahi v CMI Industrial (Forge) [2012] FWA 7275 at [11]-[16].
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- AGLC
- Thomas Erdos v Smart Health Australia [2025] FWC 1841
- Case
- [2025] FWC 1841
- Decision Date
CaseChat Overview and Summary
The court considered the legal issue of whether Erdos' application could proceed without obtaining leave of the Court under section 500(2) of the Corporations Act 2001, given the company’s liquidation. It was established that the Fair Work Commission lacks the authority to grant such leave and that Erdos' application constituted a civil proceeding that required court leave. Given Erdos' failure to respond to multiple notices and requests to seek court leave, the Commission concluded that the application had no reasonable prospects of success. The court referenced previous cases such as Smith v Trollope Silverwood & Beck Pty Ltd and Silalahi v CMI Industrial (Forge) to support its findings.
The Deputy President O'Neill dismissed Erdos’ application, noting that Erdos had ample opportunity to seek court leave but failed to do so. The court's decision was based on the understanding that without court leave, the application could not proceed. The dismissal was made on the grounds that the application lacked reasonable prospects of success, and Erdos' failure to respond to the Commission’s communications further supported this conclusion. The court ordered the dismissal of Erdos' application for unfair dismissal under section 394 of the Fair Work Act 2009.
In summary, the court dismissed Thomas Erdos’ unfair dismissal application against Smart Health Australia due to the company's liquidation and Erdos' failure to obtain necessary court leave. The court held that the Commission could not proceed with the application without such leave, and Erdos' lack of response to multiple communications underscored the application's lack of reasonable prospects of success.
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