FWC examines whether comprehensive settlement bars subsequent dismissal claims
The Fair Work Commission (FWC) recently dismissed an unfair dismissal application after finding that the worker had already reached a binding settlement agreement with his employer.
The case arose when the worker applied for an unfair dismissal remedy but the employer argued that a previous settlement had resolved all employment-related disputes between the parties.
The worker acknowledged that a settlement agreement existed but claimed the employer had not fulfilled the agreed terms, arguing this justified continuing with the unfair dismissal proceedings.
The employer provided proof of payment and argued that the settlement agreement covered all potential claims arising from the employment relationship.
The worker initially applied for an unfair dismissal remedy naming the wrong company as the respondent. That company objected on the basis that it was not the worker's actual employer, explaining that the worker was employed by a related corporate entity instead.
The worker subsequently sought to substitute the correct employer as the respondent in the proceedings, and on 9 June 2025, the FWC granted this request.
After the substitution was made, the original company wrote to the FWC stating: "Please find attached the Deed of Release and Settlement for this matter. We understand this matter to have been finalised in February...
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