Court refuses costs even after employer wins on every issue and secures damages
In a decision handed down on 15 May 2026, Judge Forbes of the Federal Circuit and Family Court of Australia refused Melbourne Water's bid to recover costs from a former employee it had dismissed for serious misconduct - even though the utility won on every issue at trial and secured damages on its cross-claim.
The decision is a reminder of just how protective section 570 of the Fair Work Act really is, and how rarely Australian employers get to recover their legal spend in employment litigation.
Joshua Spiteri worked as a Works Coordinator at Melbourne Water's Western Treatment Plant in Werribee from August 2021 until his summary dismissal on 26 February 2024. The dismissal followed an internal investigation into his motor vehicle expense claims. In a later settlement letter, Melbourne Water put the value of the alleged improper reimbursements at approximately $17,000.
In May 2024, Spiteri sued under the general protections regime, alleging he had been dismissed because he complained about not having a work-supplied vehicle, because he had family and carer's responsibilities, and because he was a member of the Electrical Trades Union Victoria. Melbourne Water filed a cross-claim in October 2024 for breach of contract, saying Spiteri had been reimbursed for kilometres he had never actually driven, including on days he worked from home.
In February 2025, the company put a settlement proposal on...
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