[2024] FWC 2204
What happened
Joel Minchin (the Applicant) applied to the Fair Work Commission to deal with a general protections dispute, alleging his dismissal contravened the Fair Work Act 2009. He named Civmec Construction & Engineering Pty Ltd (the Respondent) as the party involved. Multidiscipline Solutions Pty Ltd (MSP), a wholly owned subsidiary of Civmec, responded to the application asserting the Applicant was not dismissed but resigned. Stephanie Baptist of Civmec initially filed documents on behalf of MSP, but later confirmed Civmec did not authorise MSP to respond. The Respondent argued it was not the Applicant’s employer and sought to have the hearing vacated.
What was decided
The Fair Work Commission dismissed the Respondent’s jurisdictional objection that it was not the Applicant’s former employer and therefore there was no dismissal. The Commission found that MSP, a wholly owned subsidiary of Civmec, was the Applicant’s former employer. The Commission determined it had the authority to deal with the dispute, even though Civmec was not the Applicant’s direct employer, citing its power to inform itself on relevant matters. The matter will be relisted to determine whether the Applicant voluntarily resigned.
What it means for employers
Employers should be aware of the potential liability of parent companies for actions taken by subsidiaries, especially when subsidiaries are used for payroll or HR functions. Ensure clear authorisation is in place when third parties are acting on behalf of a company in legal proceedings. The decision highlights the Commission’s power to investigate matters beyond the immediate employer-employee relationship.
What it means for employees
Employees should be aware that a parent company can be held accountable for actions taken by a subsidiary, even if the employment contract is with the subsidiary. Employees who believe they have been unfairly dismissed should pursue their claims, even if the employer attempts to argue they are not the correct party.
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