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“You have one message: you’re unemployed”

Respectful communication is key. Read how one employer did not understand the importance of proper redundancy procedures in the workplace.

08 May 2024

Mike Toten

Mike Toten is a freelance writer, editor and media commentator.

A truck driver was awarded compensation of almost $19,000 after his employer left a message on his voicemail stating he was no longer employed. The employer had sold the business and claimed it was a genuine redundancy, but the Fair Work Commission (FWC) held that the employer did not follow the required consultation process for redundancy and therefore unfairly dismissed the employee.

Facts of case

After the employer sold the business, the Manager left a phone message on a Saturday stating that the new owner did not require him and his employment had ended. There had been no consultation with him about possible redundancy.

When the employee claimed he had been dismissed, the employer alleged that it had received several complaints about him, relating to poor customer service (mainly late deliveries), threatening a customer, sexual harassment and assault. The employer produced emails attempting to support these claims. However, the FWC found that the evidence to back up those claims was often vague and inadequate. While the volume of emails indicated that there had indeed been some problems, the FWC commented that the employer had not handled them in a timely or transparent manner, nor had it raised most of them with the employee nor properly warned him.

Decision

Although the employer had a genuine reason to make the employee redundant (sale of the business), it failed to follow the redundancy consultation procedures set out in the relevant award. To notify the employee via voicemail was disrespectful and discourteous, and the absence of specialist HR assistance did not excuse that. The employer also failed to provide written notice of dismissal and payment in lieu of notice.

The FWC awarded compensation of $16,380 plus superannuation for unfair dismissal plus $530 to cover the cost of the driver having to upgrade his truck licence in order to find other employment.

What this means for employers

Even when there is a genuine reason for redundancy, such as the sale of a business, the employer still has to observe any requirements to consult with employees set out in legislation or an award or agreement.

Notifying an employee by text or voicemail message, instead of in person and in writing, is likely to increase the chance of redundancy or dismissal being found to be unfair.