Company downturn leads to permanent staff cuts but casual work still available
The Fair Work Commission (FWC) recently dealt with an unfair dismissal application where a worker challenged his termination, arguing it was not a genuine redundancy.
The worker had been employed by his company since November 2022 and was dismissed in December 2024 following what the employer claimed was a downturn in business.
The worker argued that his dismissal was unfair because substantial work remained available, evidenced by the company's continued employment of numerous casual workers.
He said the employer failed to follow proper consultation processes and didn't explore reasonable alternatives that could have preserved his permanent position.
The worker also raised concerns about the employer's compliance with enterprise agreement provisions regarding redundancy procedures.
The worker started employment with a traffic management company as a casual employee in November 2022. During 2024, his employment status changed to permanent under clause 24.8 of the company's enterprise agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU).
This clause automatically converted employees who worked on a regular and systematic basis for more than six weeks to permanent employment status.
At the time of the worker's dismissal, the company employed 13 permanent employees and 32 casual employees. The business operated in the traffic...
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