Worker handed termination letter without prior warning or discussion of alternatives
The Fair Work Commission (FWC) recently dealt with a case involving a part-time sales assistant who challenged her dismissal despite the employer's genuine financial difficulties.
The case arose when the worker was given written notice of redundancy in September 2024 after nearly three years of employment, with the fashion wholesaler arguing it needed to restructure due to declining offline sales and rising operational costs.
The worker contested the dismissal, arguing she was not properly consulted about the redundancy despite being covered by an award requiring consultation about major workplace changes.
The employer maintained that the redundancy was genuine due to deteriorating financial circumstances that required cost-reduction measures, including staff downsizing and warehouse relocation from Sydney to Melbourne.
The employer operated as a fashion wholesaler designing women's casual and evening dresses in Sydney with manufacturing conducted in Guangzhou, China.
The business operated under three brands, selling through wholesale agents in Australia and New Zealand, plus online sales channels, employing fewer than 15 staff in a small enterprise structure.
By 2024, the company experienced significant financial difficulties, including a 58% reduction in wholesale sales, delayed customer payments, and continuous rental arrears...
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