[2025] FWC 1526
At a glance
- 9
What happened
the Applicant was unfairly dismissed by Orientile Pty Ltd. The Fair Work Commission previously ordered Orientile to pay the Applicant $31,652.93 in compensation. Orientile, a small business, then applied to pay this compensation in monthly instalments over 12 months, citing financial strain. Orientile provided limited bank statements as evidence of their financial situation. the Applicant opposed the instalment plan, as he has been without income since his dismissal. Orientile employed 9 people at the time of the dismissal.
What was decided
The Fair Work Commission allowed Orientile to pay the compensation in instalments, but reduced the proposed timeframe. The Commissioner found Orientile had the means to pay the full amount and that a 12-month instalment plan was not necessary. The order was amended to require two payments of $15,826.47, due on 11 June 2025 and 2 July 2025. The Commissioner considered the need to balance Orientile’s business sustainability with the Applicant’s right to receive compensation promptly.
What it means for employers
Employers seeking to pay compensation in instalments should be prepared to provide robust evidence of their financial difficulties. The Fair Work Commission will consider the applicant's ability to pay and the impact on the employee's access to compensation. A shorter timeframe for repayment may be imposed if the business is deemed capable of paying sooner.
What it means for employees
Employees who have received an unfair dismissal compensation order are entitled to receive the full amount in a reasonable timeframe. If an employer requests to pay in instalments, employees should be aware that the Commission will consider their financial need and the employer's ability to pay.
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