FWC reveals lessons about redundancy vs dismissal rights
17 Jun 2025
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The Fair Work Commission (FWC) recently dealt with an unfair dismissal case involving three workers who were told their positions would become redundant when their employer lost a major contract.
The workers were offered alternative roles but refused them, leading to a dispute over whether they resigned or were dismissed.
The workers argued they had been forced into fundamentally different positions that would reduce their income and change their working conditions significantly.
They maintained they should not have to resign and that their employer should terminate their employment and pay redundancy entitlements.
The employer countered that they had offered comparable alternative roles and that no termination had occurred. They argued the workers had effectively resigned by refusing reasonable redeployment offers and failing to report to their new positions.
The three workers were employed as roadside technicians for a motor vehicle dealership.
In October 2024, the dealer principal called affected employees to inform them that their major service contract would not be renewed and would end on 9 December 2024. A new contractor was set to take over the contract.
On 8 November 2024, the human resources manager sent emails to workers asking them to attend meetings to discuss the redundancy.
The emails noted that under the modern award covering the...
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