The business case held up and redeployment was ruled out - so how did this dismissal still fail
A cosmetics maker had a sound case for redundancy. One missing step made the dismissal unfair.
The Fair Work Commission has reminded employers that a strong business case for redundancy is not enough on its own - skip consultation, and the dismissal can still be found unfair.
In a decision issued on July 16, 2026, the Commission found that an Australian cosmetics and personal care manufacturer, Cosmetic Laboratories (Aust) Pty Ltd, unfairly dismissed a quality control officer, even though it accepted the role was genuinely no longer needed and that there was no reasonable option to redeploy him.
The worker joined the company as a casual in February 2023 and became a permanent quality control officer in July 2023, checking product quality, production processes, packaging, hygiene and staff attire.
By 2025, the business was under financial strain. On the evidence before the Commission, it had recorded a loss of more than one million dollars in 2024, a cash management loss of $92,000 in the first quarter of 2025, and a residual balance of $35,973.76 at the end of the year. In May 2025, staff were told the company was considering a restructure and would operate under a "low budget strategy" to reduce costs, particularly labour costs. After a review between June and August, it decided the standalone quality control role was no longer required. On September 1, 2025, the worker was...
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