FWC decision clarifies dismissal boundaries in labour-hire arrangements
10 Apr 2025
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The Fair Work Commission (FWC) recently dealt with a case involving a labour hire worker who claimed unfair dismissal after being removed from a client site following a workplace incident. The worker believed he had been unfairly dismissed when he could no longer work at his original assignment location.
The worker initially argued he was dismissed when banned from returning to the client's site, despite being offered and accepting alternative work. Later, he changed his position to claim "constructive dismissal" based on an alleged breakdown of trust in the employment relationship.
The case raised important questions about the nature of dismissal in labour hire arrangements, specifically whether removal from a client site constitutes dismissal by the labour hire employer, and what happens when a worker declines further assignments.
Labour hire contract terms challenged
The worker was employed by Tusk Group Pty Ltd under a contract dated 23 August 2023 as a "casual on-hired employee." His contract stated that "Termination of an assignment by the Employer does not of itself constitute termination of employment" and that "The Employer may change or terminate assignments of the Employee without reason."
Tusk provided workers to various clients, including a Kmart distribution centre in Truganina, Victoria. Operations at this site were partly managed by another company called Toll, which...
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